Spot Bitcoin exchange-traded funds (ETFs) in the U.S. have experienced their third consecutive day of outflows, while spot Ethereum ETFs have shown a modest recovery after a brief period of inactivity. Investors are grappling with market fears, leading to significant sell-offs in the cryptocurrency space.
Bitcoin ETFs Face Continued Outflows
On October 10, twelve spot Bitcoin ETFs reported outflows totaling $120.76 million, marking a substantial increase from the previous day’s outflows of $40.56 million. Fidelity’s FBTC ETF was the most affected, with $149.5 million exiting the fund after a day of zero net flows. Other major funds, including ARK and 21Shares’ ARKB, also saw significant withdrawals, with ARKB losing $30.30 million and Bitwise’s BITB shedding $6.16 million. 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 broader cooling of investor interest in Bitcoin exposure.
Market Fears Drive Sell-Offs and Liquidations
The surge in outflows coincided with a 3% drop in Bitcoin’s price, which hit a three-week low of $58,900 before slightly recovering to $60,602. This decline followed unexpected U.S. inflation data, which reignited concerns about the Federal Reserve pausing interest rate cuts, further pressuring the cryptocurrency market. During this sell-off, approximately $198.6 million in liquidations occurred across the market, impacting over 59,000 traders. Bitcoin long positions accounted for $53.3 million of these liquidations, while Ethereum traders faced losses of $31.6 million.
Ethereum ETFs Attract Modest Inflows
In contrast to the Bitcoin trend, Ethereum ETFs saw a small but notable uptick in inflows. Nine spot Ethereum ETFs recorded net inflows of $3.06 million on October 10, reversing the prior day’s inactivity. BlackRock’s ETHA led this charge, attracting $17.85 million in fresh capital, while Grayscale’s Ethereum Mini Trust saw inflows of $3.34 million—its first positive flows since September 27. However, these gains were somewhat offset by outflows from Grayscale’s ETHE, Bitwise’s ETHW, and Fidelity’s FETH, which experienced redemptions of $10.37 million, $4.23 million, and $3.54 million, respectively.
Conclusion: A Market in Flux
As the cryptocurrency landscape evolves, Bitcoin continues to face significant challenges, marked by investor hesitancy and outflows, while Ethereum ETFs are showing signs of resilience amid the turmoil. At the time of writing, Ethereum was trading at $2,414, moving sideways in a market largely dominated by Bitcoin’s volatility.
