Bitcoin ETFs suffer biggest exodus since June as Ethereum withdrawals hit nine-month high

Market Decline Accelerates

US spot Bitcoin and Ethereum exchange-traded funds saw their steepest withdrawals in months as the cryptocurrency market continued to decline. Data from SoSoValue shows that the 12 listed US Bitcoin ETFs lost $484.9 million on October 7, their largest single-day outflow since June 25. BlackRock's iShares Bitcoin Trust (IBIT) led the withdrawals with $207.7 million, followed by Fidelity's FBTC at $105.1 million and ARK 21Shares' ARKB at $101.7 million.

Weakening Institutional Demand

Weakening institutional demand was identified by Bitfinex analysts before Wednesday's selloff. The analysts noted that Bitcoin ETF flows had become increasingly uneven, with investment slowing sharply after the buying spree that supported September's recovery. Daily inflows averaged $341.7 million during Bitcoin's mid-September rally from $76,000 to $87,000. However, that figure fell to about $35 million per day over the five trading sessions through October 6, totaling $172.9 million in cumulative net inflows.

Pressure on Risk Assets

The decline coincides with rising US Treasury yields, a stronger dollar, and elevated oil prices, adding to pressure on risk assets. ETF demand was weakening before the latest withdrawals. The funds have now experienced seven consecutive trading sessions of outflows, totaling approximately $569 million. Together, the two ETF categories lost about $646 million on Wednesday as Bitcoin fell to its lowest daily close in the last 20 days, below $83,000, while Ethereum retreated toward $2,500 during the reporting period.