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Last week, US spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows, the second-largest since their launch in 2024. According to data from SoSoValue, the total net outflows experienced during the week ending October 18 totaled approximately $1.23 billion. The departure came after a turbulent trading week for Bitcoin, which fell from roughly $121,000 to $103,700 before climbing back above $111,000.
BlackRock iShares Bitcoin Trust experienced the most significant withdrawals, losing a total of $268.6 million. The Wise Origin Bitcoin Fund of Fidelity and GBTC of Grayscale came in second and third with outflows of $67.2 million and $25 million, respectively. Other funds, such as the ETF Valkyrie, experienced a few redemptions.
Last week, net inflows were recorded for only one day, totaling $102.7 million on Tuesday. Farside Investors reported that four out of five trading days recorded negative flows, underscoring declining institutional confidence in the face of increased market uncertainty.
Total outflows during this week were only second to the $2.6 billion withdrawn in the week ending February 28. The swift turnaround from the prior week's inflows of $2.7 billion highlights the changing mood among investors, as Bitcoin is exposed to severe price swings and the greater market risks of financial markets.
Recent price fluctuations of Bitcoin reflected the volatility surrounding ETF trading. On October 17, the cryptocurrency dropped to its lowest point of four months, reaching below the $104,000 point. Nonetheless, it recovered by 4.2% in the next 24 hours and was trading at around $111,268 early on Monday, according to CoinMarketCap data. Ether too recovered, adding approximately 5% to trade over 4,000.
Analysts said that the selling off was partly due to increased geopolitical tension and macroeconomic uncertainties. According to market reports, the threat of escalated U.S. tariffs on Chinese goods had caused a general sell-off in risk assets. However, the assurances at the end of the week and projections of a possible Federal Reserve rate cut soothed nerves and eased the liquidity situation.
Although it has been volatile over the past few months, some analysts remain optimistic about Bitcoin's long-term direction. According to technical indicators, Bitcoin will need to hold above critical levels at $105,000 and $107,000 to prevent a further decline to $100,000. Overcoming resistance around the previous level of $115,000 would lead to fresh gains and rebuild confidence in investors.
Meanwhile, Charles Schwab reported an increase in client interest in cryptocurrency exchange-traded products. According to CEO Rick Wurster, Schwab customers now own approximately 20% of assets in all crypto ETPs in the United States. He observed that activity on the firm's crypto platform has increased by 90% over the last year, demonstrating a persistence of interest despite recent market volatility.
The institutional outflows and the revival of retail interest indicate a phase of stabilization of Bitcoin ETFs. According to analysts, the future of the cryptocurrency market will likely be shaped by future monetary policy decisions and the overall state of the global economy.
Also Read: Crypto News Today: Bitcoin Lending, DeFi Liquidity Boom, Solana Surge, and BlackRock ETF Milestone
