Bitcoin ETFs See $729M in Two-Day Outflows
US spot Bitcoin ETFs recorded $729 million in net outflows over two days, reversing a $119 million inflow on Tuesday. The withdrawals followed a $484.9 million single-day outflow on Oct. 7—the largest since June 25—and affected funds from BlackRock, Fidelity, Morgan Stanley and ARK 21Shares. Cumulative net inflows remain substantial at $57.8 billion, but the latest Bitcoin ETF outflows signal weaker near-term institutional demand.
The withdrawals coincided with rising oil prices, Middle East tensions and higher US Treasury yields. The 30-year yield reached about 5.7%, while Fed minutes indicated that most officials expected another rate increase by year-end. These pressures could keep Bitcoin under strain as traders weigh inflation, interest-rate expectations and liquidity. Bitcoin recently traded above $82,688, down more than 3% over seven days but up nearly 2% in the prior 24 hours; it remains about 34% below its October record of $126,080. Earlier selling also coincided with Bitcoin falling to about $81,750 and roughly $429 million in crypto liquidations, mostly from long positions. ETF outflows may add short-term price pressure, though rate hikes have not consistently led to Bitcoin declines.
Bearish
The $729 million two-day outflow, including the sharp Oct. 7 withdrawal, points to softer institutional demand and may encourage short-term selling in Bitcoin. Rising Treasury yields, oil-driven inflation concerns and the prospect of further Fed tightening can make lower-risk yield-bearing assets more attractive and weigh on liquidity and risk appetite. The reported liquidations, largely affecting long positions, add evidence of near-term downside pressure. However, the signal is not uniformly negative: Bitcoin ETFs retain $57.8 billion in cumulative net inflows, the price showed a short-term rebound in the latest account, and past rate increases have not always pushed Bitcoin lower. These factors temper the longer-term implication; sustained ETF outflows would strengthen the bearish case, while renewed inflows could indicate that institutional demand is recovering.