Spot Bitcoin ETFs See Third Day of Outflows, Ether ETFs Rebound

Spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced their third consecutive day of outflows on October 10, while spot Ethereum ETFs saw a modest but positive rebound after a day of inactivity. Data from SoSoValue revealed that the 12 spot Bitcoin ETFs recorded outflows totaling $120.76 million on October 10, a significant increase from the previous day’s outflows of $40.56 million.

Leading the wave of Bitcoin ETF outflows was Fidelity’s FBTC ETF, which saw $149.5 million exiting the fund after a day of zero net flows. Other major funds such as ARK and 21Shares’ ARKB also experienced outflows, with $30.30 million and $6.16 million respectively. Even BlackRock’s IBIT, the largest Bitcoin ETF by net assets, broke its five-day inflow streak with an outflow of $10.83 million, indicating a cooling of investor interest in Bitcoin exposure.

Grayscale, another significant player in the ETF space, saw both its GBTC and Grayscale Bitcoin Mini Trust log outflows of $18.52 million and $21.16 million respectively. Despite these negative flows, six other Bitcoin ETFs remained neutral, neither contributing to the outflows nor attracting fresh investor interest.

The surge in BTC outflows coincided with a 3% drop in Bitcoin’s price, which hit a three-week low of $58,900 before recovering slightly to $60,602. This decline followed unexpected U.S. inflation data that reignited fears of the Federal Reserve pausing interest rate cuts, adding pressure to the cryptocurrency market. The market sell-off also led to $198.6 million in liquidations, affecting over 59,000 traders, with Bitcoin’s long positions accounting for $53.3 million of those liquidations.

In contrast to Bitcoin, Ethereum ETFs saw a small but notable uptick on October 10. Nine spot Ethereum ETFs recorded net inflows of $3.06 million, reversing a prior day of zero net flows. BlackRock’s ETHA led the charge, attracting $17.85 million in fresh capital. Grayscale’s Ethereum Mini Trust also saw inflows of $3.34 million, marking its first positive flows since September 27. However, these gains were partially offset by outflows from Grayscale’s ETHE, Bitwise’s ETHW, and Fidelity’s FETH.

At the time of writing, Ethereum was trading at $2,414, moving sideways in a market largely dominated by Bitcoin’s volatility. The market sentiment, as indicated by the Crypto Fear and Greed Index, dropped to 32, marking its lowest level since mid-September and firmly placing the sentiment in the “fear” zone.

Overall, the recent trends in Bitcoin and Ethereum ETFs reflect the ongoing volatility and uncertainty in the cryptocurrency market, with investors closely monitoring market developments and adjusting their positions accordingly.