Key Points
Bitcoin exchange-traded funds (ETFs) recorded substantial outflows on Oct. 1.
This ended their eight-day inflow streak.
This coincided with Bitcoin’s price falling below $62,000.
The drop was due to increased tension in the Middle East.
Data from SoSoValue showed that the 12-spot Bitcoin ETFs had net outflows of $242.53 million.
This broke an inflow streak that had brought $1.42 billion into these funds over the previous eight days.
It was the largest daily outflow since Sept. 3, when $288 million exited Bitcoin ETFs.
Outflows from Various Funds
Among the funds, Fidelity’s FBTC led the outflows with $144.7 million withdrawn on Oct. 1.
This was followed by ARK 21Shares’ ARKB, which saw $84.3 million in outflows.
Bitwise’s BITB and VanEck’s HODL also experienced significant outflows, losing $32.7 million and $15.8 million, respectively.
Grayscale’s Bitcoin Trust saw a more modest decline of $5.9 million.
Despite the outflows, trading volume across the 12 Bitcoin ETFs surged.
It reached $2.53 billion on Oct. 1.
Since their launch, these funds have attracted a cumulative total of $18.62 billion in net inflows.
This shows sustained interest despite recent volatility.
The sharp outflows in Bitcoin ETFs were closely tied to geopolitical events.
As news of Iran’s missile strikes on Israel broke, Bitcoin’s (BTC) price fell over 3.7%, shedding nearly $4,000 within 24 hours.
The cryptocurrency hit a two-week low of around $60,315 before rebounding to approximately $61,500.
This decline in Bitcoin’s price was accompanied by a shift in market sentiment.
This was reflected in the Crypto Fear and Greed Index.
The index dropped from a neutral reading of 50 to a fear level of 42.
This indicates growing investor caution in the face of heightened geopolitical risks.
U.S. spot Ether ETFs also continued to experience outflows.
A total of $48.52 million left these products on Oct. 1.
Grayscale’s Ethereum Trust led the outflows, shedding $26.6 million.
Fidelity’s Ethereum Trust saw $25 million withdrawn.
Bitwise’s ETHW experienced more modest outflows of $895.65K.
Ether ETFs also saw a rise in trading volume.
It increased to $290 million on Oct. 1, up from $147.9 million the previous day.
Since their launch, these products have recorded cumulative net outflows of $572.31 million.
At the time of publication, Ethereum (ETH) was down 6.3%, trading at approximately $2,474.
The broader cryptocurrency market continues to face pressure from geopolitical events and investor uncertainty.
