Bitcoin ETFs lose $485 million as Ethereum outflows rise

U.S. Bitcoin ETFs recorded $484.9 million in net outflows on Oct. 7, their largest single-day withdrawal since June 25. Ethereum ETFs lost $160.9 million as demand for cryptocurrency funds weakened.

The 12 listed U.S. Bitcoin ETFs recorded about $35 million in average daily inflows during the five trading sessions through Oct. 6. That compared with average daily inflows of $341.7 million during Bitcoin’s rally from $76,000 to $87,000 in mid-September.

BlackRock’s iShares Bitcoin Trust had the largest outflow on Oct. 7, at $207.7 million. Fidelity’s Wise Origin Bitcoin Fund recorded $105.1 million in outflows, while the ARK 21Shares Bitcoin ETF lost $101.7 million.

BlackRock’s fund had attracted $536.2 million during the five sessions through Oct. 6. The inflows offset $363.3 million in combined outflows from other U.S. Bitcoin ETFs during the same period.

Ethereum ETFs recorded their seventh consecutive session of outflows. BlackRock’s iShares Ethereum Trust accounted for $116.1 million of the latest withdrawals, while Grayscale’s Ethereum Trust lost $25.8 million. Ethereum funds have shed about $569 million during the seven-session streak, including $506.3 million over the five sessions through Oct. 7.

Combined outflows from the two ETF groups reached about $646 million on Oct. 7. Bitcoin closed below $83,000, its lowest daily close in 20 days. Ethereum traded near $2,500. U.S. Treasury yields, the dollar and oil prices rose during the period.

The withdrawals pushed Bitcoin below the estimated $84,318 average acquisition price for ETF investors. The estimate, based on Checkonchain data, measures the average price paid for capital invested through the funds and does not represent the entry price of every investor.

A Bitfinex report said Bitcoin ETF inflows had historically slowed to about $65 million a day when the cryptocurrency approached the aggregate breakeven level. The report noted that further price declines could lead to additional redemptions from investors seeking to limit losses.

Ethereum’s ETF outflows coincided with increased short positioning in derivatives markets. Negative funding rates for perpetual futures mean traders holding bearish positions pay traders holding long positions to maintain their exposure.

Bitfinex also reported that weaker institutional inflows left smaller cryptocurrency tokens more dependent on capital moving among existing digital assets. A further Bitcoin decline could lead investors to reduce their altcoin holdings rather than move funds into other cryptocurrencies.