U.S. spot Bitcoin exchange-traded funds experienced $1.28 billion in net withdrawals last week, marking the highest weekly total for outflows since the end of June.
Data indicates that these substantial redemptions brought the year-to-date net outflows for the funds to roughly $919 million. This followed October’s $515 million in net outflows, prolonging a stretch of persistent investor hesitation.
Over the course of the week, Bitcoin dropped beneath $76,000 as the market reacted to a convergence of pressures, such as the fallout from Binance’s $6.3 billion security breach, questions surrounding the U.S. midterm elections, and a wider tech stock sell-off.
BlackRock’s IBIT Accounts for Nearly All Outflows
Accounting for the vast majority of the week’s activity, BlackRock’s iShares Bitcoin Trust (IBIT)—the leading spot Bitcoin ETF measured by assets under management—experienced $1.21 billion in net outflows. Figures from Farside Investors show this comprised about 95% of the total reported data.
For IBIT, this extended an outflow streak to six straight trading days. Investors have pulled an estimated $1.44 billion out of the fund beginning October 30.
Conversely, Fidelity’s Wise Origin Bitcoin Fund (FBTC) registered roughly $93 million in net inflows over the week, despite suffering close to $200 million in single-day outflows on Thursday.
Market Sentiment Turns Cautious
Bitfire, a research firm, tied the market weakness to evolving interest rate projections, post-election ambiguity, and continued strain within technology equities. Additionally, the firm mentioned that investors are re-evaluating whether Congress will pass the CLARITY Act before the year concludes.
Highlighting market indicators, Bitfire pointed to a Crypto Fear & Greed Index score of 25—denoting extreme fear—alongside a negative Coinbase Premium, which showed that Bitcoin traded cheaper on Coinbase than on other platforms.
The firm characterized the present market as undergoing a “breakdown and bottom-seeking phase.” It identified the $74,400–$75,000 band as a critical support zone, cautioning that a lasting drop below this threshold could trigger additional declines. Near-term catalysts to watch include upcoming U.S. inflation figures and commentary from the Federal Reserve.
As of publication time, Bitcoin hovered near $74,049, reflecting a roughly 5% decline over the past seven days and a 2.3% decrease over the preceding 24 hours.
How Sensitive Are Bitcoin ETF Flows?
These recent outflow figures highlight how responsive Bitcoin ETF flows are to cryptocurrency incidents alongside traditional market sentiment. Following strong inflows earlier in the year, these investment vehicles have encountered steady headwinds recently as macroeconomic unpredictability and stock market volatility dampens risk-asset demand among investors.
Traders and analysts will monitor whether current support levels hold, as well as how institutional capital reacts once Federal Reserve communications and inflation statistics provide greater clarity.
Written by
Yuki Yamamoto
