Bitcoin ETFs Bleed 77,000 BTC in a Quarter as Retail Traders Flee

U.S. spot Bitcoin ETFs recorded $635 million in net outflows on Thursday, according to Cointelegraph, citing SoSoValue data, while Decrypt put the figure at $635.6 million. The withdrawals erased most of a three-day, roughly $1.07 billion inflow streak and pushed October back into net outflows of about $175 million to $176 million. It was the largest single-day outflow since June 25, when the funds lost $696 million, Cointelegraph reported. Bitcoin traded near $81,460 on Friday, flat over 24 hours, as Decrypt noted that traders on the Myriad prediction market cut the odds of Bitcoin topping $87,500 this month to 17%. Ether and Solana ETFs also saw outflows.

Background

The sources describe a sharp reversal in what had briefly looked like an October recovery for crypto ETFs. According to Decrypt, Bitcoin funds had climbed to roughly $460 million in net inflows for the month on Wednesday before Thursday's selling pushed them back to about $176 million in net outflows. Cointelegraph reported that the withdrawals snapped a three-day inflow streak that had attracted $1.08 billion, and that the funds still had weekly net inflows of $443 million after two consecutive weeks of outflows. Decrypt noted that the $635.6 million exit topped the $484.9 million outflow on Oct. 7, which had been the worst since June. The sources also place the move in a broader market context: Decrypt reported that oil climbed above $111 a barrel as AI stocks slid, dragging the S&P 500 and global markets lower, and that the Federal Reserve next meets Oct. 27-28 with traders anticipating a hold. Decrypt added that spot Bitcoin ETFs debuted in January 2024 and have drawn $57.8 billion in net inflows, while Ethereum funds, which followed in July, have taken in $12.7 billion, and Solana funds arrived late last year.

What happened

Cointelegraph reported that U.S. spot Bitcoin ETFs recorded $635 million in net outflows on Thursday, ending a three-day inflow streak and leaving the funds with $175 million in net outflows for October, according to SoSoValue data. The report said the withdrawals more than erased Wednesday's $528 million in inflows and were the largest single-day net outflow since June 25, when Bitcoin ETFs lost $696 million. Cointelegraph added that the three-day streak had attracted $1.08 billion and that the funds still had weekly net inflows of $443 million after two consecutive weeks of outflows. Decrypt, citing its own ETF tracker, put Thursday's outflow at $635.6 million, saying it wiped out nearly 60% of the roughly $1.07 billion taken in over the previous three sessions and pushed October to about $176 million in net outflows. Decrypt said it was the biggest single-day outflow of the month, topping the $484.9 million exit on Oct. 7, and that cumulative net inflows since launch slipped to $57.8 billion with total net assets at $100.2 billion. Both outlets reported outflows in other crypto ETFs: Cointelegraph cited about $111 million for Ether ETFs, roughly $9 million for Solana and about $8 million for Hyperliquid, with XRP ETFs attracting around $3.6 million; Decrypt reported $110.6 million for Ethereum ETFs, bringing their October outflows to about $1.18 billion, and $8.9 million for Solana ETFs, or about $68 million in outflows this month.

Market impact

Bitcoin traded between $80,996 and $82,551 on Thursday, down from Wednesday's intraday high of $84,777, and was at approximately $81,783 at the time of Cointelegraph's publication, down around 1% over 24 hours according to CoinGecko. Decrypt reported Bitcoin near $81,460 on Friday, flat over 24 hours and down 0.4% on the week, with Ethereum down 0.2% at about $2,400 and Solana down 0.3% at roughly $104. Decrypt put the 30-day declines at 4.8% for Bitcoin, 11.4% for Ethereum and 10.4% for Solana, with total crypto market cap at about $2.85 trillion and trading volume down 20% to $67.1 billion. On the prediction market Myriad, Decrypt reported traders gave Bitcoin a 17% chance of topping $87,500 before month-end, down from 20% a day earlier, 9% odds of reaching $90,000 and 32% odds of sliding to $77,500. Decrypt also reported that Ethereum ETFs lost $110.6 million, bringing October outflows to about $1.18 billion, and that Solana ETFs shed $8.9 million, bringing them to about $68 million in outflows this month with just two days of inflows in October.

Why it matters

The sources present ETF flows as a closely watched gauge of investor sentiment because issuers report them daily and much of the money comes from institutions and financial advisers, as Decrypt noted. The reversal matters because it shows how fragile October's brief recovery was: Decrypt reported that a single session erased nearly 60% of a three-day, $1.07 billion inflow streak and flipped the month back to a net loss. Cointelegraph noted the outflow was the largest since June 25, when the funds lost $696 million, a reminder that large single-day exits have recurred this year. The sources also show the pressure was not confined to Bitcoin: Decrypt reported Ethereum ETFs' October outflows at about $1.18 billion and Solana ETFs at about $68 million. Still, both outlets noted prices barely budged despite the heavy outflows, and Decrypt reported that analysts described Bitcoin as in a wait-and-see mode that may not be bad for the market. Decrypt also noted the Fed's Oct. 27-28 meeting, with traders anticipating a hold.