Bitcoin ETFs saw net outflows of $228.6 million this week and $681.1 million the prior week, marking October as a down month for spot Bitcoin products.
Macro & Markets ·
U.S. spot Bitcoin ETFs experienced consecutive weeks of investor withdrawals, with redemptions totaling $228.6 million in the most recent week followed by $681.1 million the week prior, bringing combined outflows to approximately $910 million. The worst single day occurred Wednesday when $261.4 million exited the funds, while only Tuesday saw a meaningful inflow of $175.7 million. These outflows have pushed the month into steep decline, with the funds down roughly $615 million for October despite maintaining $57.3 billion in cumulative net inflows since their January 2024 launch.
Market timing coincided with economic data that renewed rate-hike expectations. A higher-than-forecast consumer price index reading of 3.7% year over year in September, combined with stronger producer prices reported Thursday, rekindled concerns about Federal Reserve policy tightening. Bitcoin dipped below $80,000 on Thursday, triggering nearly $950 million in liquidated leveraged positions—approximately 90% of them bullish long positions—according to CoinGlass data.
The mechanism behind the selling pressure involves the traditional risk-asset trade-off: elevated Treasury yields near 5% offer near-risk-free returns that compete directly with volatile holdings like Bitcoin. Higher interest rates also raise borrowing costs and strengthen the dollar, dynamics that pressure leveraged traders dependent on cheap credit. The extent to which current institutional positioning reflects tactical selling versus sustained repositioning remains unclear, though the pattern has extended across related assets including Ethereum and Solana ETF products this month.