US spot Bitcoin and Ethereum exchange-traded funds (ETFs) continued to see significant investor withdrawals on October 8, as the broader cryptocurrency market faced mounting pressure.
Bitcoin and Ethereum ETF outflows accelerate
Farside Investors reported that Bitcoin ETFs recorded $244.1 million in net outflows during the most recent trading session, while Ethereum ETFs experienced $72.5 million in withdrawals. Together, the two asset classes lost a combined total of $316.6 million in a single day.
This heightened pace of outflows has led some market analysts to question whether the historically bullish trend known as “Uptober” will hold true in 2024. Traditionally, October has brought gains for major cryptocurrencies, but this year, persistent ETF withdrawals suggest a more cautious approach by institutional investors.
In the first six trading sessions of October, Bitcoin ETFs saw cumulative net outflows exceeding $820 million, with the pace of withdrawals increasing throughout the second week. The single largest daily withdrawal occurred on October 7, when investors pulled $484.9 million out of Bitcoin ETFs.
On October 8, Bitcoin ETFs recorded $244.1 million in outflows, following $484.9 million withdrawn in the prior session, underlining the recent surge in investor caution.
Among major ETF providers, BlackRock’s iShares Bitcoin Trust (IBIT) posted $5.5 million in withdrawals, while Fidelity’s Wise Origin Bitcoin Fund (FBTC), lost $197.1 million. Other notable funds, Bitwise’s BITB and Ark Invest’s ARKB, recorded $17.7 million and $20.3 million in outflows, respectively. One exception was Franklin Templeton’s OnChain US Bitcoin ETF (EZBC), which attracted $4.7 million in net inflows.
| ETF | Net Flow (Oct. 8) |
|---|---|
| IBIT (BlackRock) | -$5.5 million |
| FBTC (Fidelity) | -$197.1 million |
| BITB (Bitwise) | -$17.7 million |
| ARKB (Ark Invest) | -$20.3 million |
| EZBC (Franklin Templeton) | +$4.7 million |
Mini dictionary: Franklin Templeton is a major US-based asset management company with over $1 trillion in assets under management, known for offering a wide range of investment products, including ETFs.
Ethereum ETFs mirror Bitcoin’s losses
Ethereum ETFs have also experienced heavy redemptions in October, with total outflows exceeding $600 million as of October 8. The largest single-day withdrawal for Ethereum ETFs was recorded on October 6, when $201.9 million exited, followed by $160.9 million on October 7.
On October 8, BlackRock’s iShares Ethereum Trust (ETHA) reported $71.1 million in withdrawals, while Fidelity’s FETH saw $5.5 million in new investments. Grayscale’s ETHE, another major Ethereum product, posted $6.1 million in outflows.
| ETF | Net Flow (Oct. 8) |
|---|---|
| ETHA (BlackRock) | -$71.1 million |
| FETH (Fidelity) | +$5.5 million |
| ETHE (Grayscale) | -$6.1 million |
The latest ETF withdrawals coincided with a wider selloff in cryptocurrency markets. Over the past 24 hours, Bitcoin slid roughly 0.44%, changing hands at around $62,660 on October 8. Ethereum traded close to $2,500 as risk-averse investors reduced exposure to major digital assets.
Market volatility and liquidations
The downturn in prices contributed to significant liquidations among leveraged traders. In the past 24 hours, approximately $1.19 billion in cryptocurrency positions were liquidated, including $356 million in Ethereum and $298 million in Bitcoin trades.
Sharp outflows from Bitcoin and Ethereum ETFs reflect a shift in market sentiment, which also triggered over $1 billion in leveraged crypto liquidations within a single day.
These developments together highlight increasing caution in the market, amid investor wariness regarding possible short-term downturns in digital asset prices.
