US spot Bitcoin exchange-traded funds (ETFs) registered $1.28 billion in net outflows last week, marking their largest weekly withdrawals since late June. The heavy outflows pushed the funds’ combined net outflows for the year to approximately $919 million, figures from SoSoValue showed. In October, the sector had already experienced $515 million in net outflows.
IBIT drives outflows, Fidelity posts inflows
BlackRock’s iShares Bitcoin Trust (IBIT), currently the world’s largest spot Bitcoin ETF by assets, saw net outflows of $1.21 billion last week, according to Farside Investors. This accounted for about 95% of the total weekly withdrawals across all US spot Bitcoin ETFs. IBIT’s streak of net redemptions reached six consecutive sessions through Friday, bringing total outflows since October 30 to about $1.44 billion.
Despite the widespread withdrawals, Fidelity’s Wise Origin Bitcoin Fund (FBTC) managed to attract $93 million in net inflows for the week. However, FBTC also suffered a sharp, single-day outflow of nearly $200 million on Thursday, highlighting the volatility in investor sentiment.
Other funds in the sector mirrored this turbulence, as shifting investor expectations and broader market concerns continued to drive sharp movements in flows.
Market faces broad selling pressure
Bitcoin’s price fell below $76,000 during the same week, with the market reacting to several unfavorable developments. Traders evaluated the aftermath of Binance’s $6.3 billion hack, escalating uncertainty following the US midterm elections, and a continued sell-off in technology stocks.
Bitfire Research noted that changing expectations for US interest rates and political uncertainty after the midterms have added to downward pressure in the crypto market. Weakness in the broader technology sector has further dampened risk sentiment among crypto investors.
Bitfire described the market as being in a “breakdown and bottom-seeking phase,” pointing to upcoming US inflation data and statements from the Federal Reserve as crucial factors. According to the firm, a sustained break below the $74,400 to $75,000 support range could trigger further selling.
At publication time, Bitcoin was trading at $74,049, slipping below the lower bound of this key support level. CoinGecko reported that Bitcoin declined 5% over the past week and 2.3% in the previous 24 hours.
Investor sentiment and regulatory outlook
Bitfire Research also highlighted that investor confidence remains fragile. Their analysis referenced a Crypto Fear & Greed Index reading of 25, indicating persistent fear in the market. In addition, the Coinbase Premium was negative, suggesting Bitcoin traded at a discount on Coinbase compared to its benchmark.
Concerns about regulatory clarity persisted, as Bitfire said investors were reassessing the likelihood of Congress passing the CLARITY Act before the end of the year. The ongoing regulatory debate has contributed to continuing uncertainty for institutional and retail participants alike.
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IBIT’s extended losing streak and the overall negative sentiment underscored the fragility in the current Bitcoin ETF market, with regulatory developments and macroeconomic cues likely to dictate upcoming trends.
