Key Points
U.S. Bitcoin ETFs See Outflows Amid Market Volatility
On October 2, U.S. spot Bitcoin exchange-traded funds experienced a second consecutive day of outflows.
This occurred as Bitcoin’s price dropped below $61,000.
The price drop was driven by escalating tensions in the Middle East.
SoSoValue data showed that the 12 U.S.-listed spot Bitcoin ETFs recorded $91.76 million in net outflows.
This continued from the previous day’s $242.53 million withdrawal.
ARK 21Shares’ ARKB fund led the outflows, with $60.26 million exiting the fund.
Grayscale’s flagship GBTC followed closely, registering $27.31 million in outflows.
This brought its total withdrawals since inception to $20.12 billion.
BlackRock’s IBIT ETF saw its first negative flow in almost a month, with $13.74 million withdrawn.
Despite its recent losses, the fund has still managed to attract $21.52 billion in inflows since its launch.
Bitwise’s BITB also experienced significant outflows, with $11.51 million leaving the fund.
On the other hand, Fidelity’s FBTC ETF was the only one to post inflows on the day, with $21.08 million.
Bitcoin ETFs’ Trading Volume Drops
The overall trading volume across the 12 Bitcoin ETFs fell significantly on October 2.
It dropped to $1.66 billion from $2.53 billion the day before.
Despite this recent downturn, these funds have attracted a cumulative $18.53 billion in net inflows since their respective launches.
This indicates that long-term institutional interest in Bitcoin ETFs remains resilient.
Eric Balchunas, Senior ETF Analyst at Bloomberg, recently noted BlackRock’s IBIT and Fidelity’s FBTC as top performers.
These funds were introduced following the 2022 bear market.
Bitcoin Price Faces Pressure Amid Geopolitical Risks
Bitcoin’s price struggles aligned with the recent wave of outflows.
The cryptocurrency fell to a low of $60,100 earlier on October 2 before recovering to just above $61,300.
The ongoing tensions between Israel and Iran have intensified market instability, adding to downward pressure on Bitcoin.
Analysts have expressed concerns about further downside risks.
One analyst predicted a potential correction of over 15%.
This could occur if Bitcoin fails to maintain support at $60,900, leading to a deeper plunge toward $52,000.
Another commentator warned that if Bitcoin reaches this level, Ethereum could fall to $1,800.
This would signal broader weakness across the cryptocurrency market.
Ether ETFs See Inflows Despite Market Struggles
While Bitcoin ETFs continued to struggle, U.S. spot Ether ETFs saw a reversal in flows.
They registered $14.45 million in net inflows on October 2 after two consecutive days of outflows.
BlackRock’s ETHA fund led the recovery with $18.04 million in inflows.
Franklin Templeton’s EZET ETF attracted $1.81 million, marking its first inflow since mid-August.
However, Grayscale’s ETHE continued to experience outflows, with $5.4 million withdrawn on the same day.
At the time of publication, Ethereum was down 3.8%, trading at approximately $2,386.
The broader cryptocurrency market continued to face pressure from geopolitical events and investor uncertainty.