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Outflow of $635 million: Spot Bitcoin ETFs turn negative in October
US-listed Spot Exchange Traded Funds (ETFs) for Bitcoin recorded a negative day on October 22. Data indicates a net capital outflow of $635.6 million, the largest of the current month. This movement brought cumulative October flows into negative territory, with an estimated overall net loss between $175 and $176 million according to various sources consulted.
Why it matters
The outflow of capital from institutional funds represents a significant technical signal for the market. The price of Bitcoin touched an intraday low of approximately $81,000 before recovering, settling around $81,669. This level is close to the estimated average cost basis of holdings held by the funds, which is about $81,500. Proximity to this threshold is often monitored by investors as a reference point for the stability of institutional portfolios.
The macroeconomic context influenced investor decisions. The Houthi rebels’ attack on Saudi Arabia and tensions in the Strait of Hormuz pushed Brent crude oil prices higher, reaching their highest level in five months. Meanwhile, selling was recorded in technology stocks following previous gains linked to recent corporate earnings.
The numbers
The net outflow of $635.6 million on October 22 primarily affected large asset managers. BlackRock, through the iShares Bitcoin Trust fund, recorded an outflow of $254 million. Fidelity, with the Wise Origin Bitcoin Fund, saw $218 million exit. ARK 21Shares reported outflows of $109 million, while Morgan Stanley and Bitwise registered approximately $30 million and over $27 million in outflows, respectively.
Despite the negative day, overall net flows for the week remain positive, with a total net investment of $439 million. However, the October 22 outflows wiped out about 60% of the inflows recorded in the previous three trading sessions.
What remains to be understood
Sources differ slightly on aggregated monthly data: Cointelegraph reports a net outflow of $175 million for October, while Decrypt indicates a cumulative loss of $176 million. Furthermore, it is not yet clear whether geopolitical tensions in the Middle East will continue to influence flows into cryptocurrencies or if the market will manage to stabilize above the funds’ average cost threshold.
Sources: Decrypt, Cointelegraph, Bitcoin Magazine, CryptoSlate.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.