On October 1st, significant shifts were observed in the crypto market as major outflows from U.S. spot Bitcoin ETFs took place. This marked a surprising reversal following an eight-day inflow streak that reached $494 million by late September. According to Farside Investors data, the largest outflow in nearly a month occurred amid geopolitical tensions in the Middle East, highlighting investor concerns.
Largest Outflow Day for U.S. Spot Bitcoin ETFs in Nearly a Month
Recent data shows a substantial shift in institutional investor sentiment. On October 1st, U.S. spot Bitcoin ETFs experienced a total outflow of $242.6 million. This followed an inflow streak that raised $1.4 billion over eight days. As tensions in the Middle East escalated, institutional investors reevaluated their positions, leading to this significant market movement.
Detailed Breakdown of Fund Outflows
Among the affected funds, the largest outflow was from the Fidelity Wise Origin Bitcoin Fund, which saw $144.7 million withdrawn. The ARK 21Shares Bitcoin ETF followed with an outflow of $84.3 million. Other funds, such as Bitwise Bitcoin ETF, VanEck Bitcoin ETF, and Grayscale Bitcoin Trust, lost $32.7 million, $15.8 million, and $5.9 million respectively. Interestingly, no inflows or outflows were recorded for Invesco, Franklin, Valkyrie, WisdomTree, and Grayscale Mini Bitcoin Trust during this period.
Bitcoin Price Drops Amid Geopolitical Tensions
Simultaneously, Bitcoin prices reacted to geopolitical developments. Following missile strikes from Iran on Israel, Bitcoin dropped by nearly $4,000, reaching a two-week low of $60,315. However, a mild recovery saw prices rise to $61,620. This volatility underscores how sensitive the crypto market remains to geopolitical instability.
Impact on Ether ETFs
Similarly, U.S. Ether ETFs were also affected, with a total outflow of $48.6 million recorded on the same day. The Grayscale Ethereum Trust led the sector’s decline with a $26.6 million outflow, followed by Fidelity Ethereum Trust, which saw $25 million withdrawn. These two funds accounted for the majority of Ether withdrawals, reflecting a broader risk-off sentiment among institutional investors.
The significant outflows from Bitcoin and Ether ETFs amid geopolitical tensions highlight the vulnerability of digital assets to external factors. This shift in institutional investor behavior underscores the ongoing complexities of the crypto investment landscape. Market participants must remain acutely aware of global events and their potential ripple effects on asset valuations.
Bitcoin, ETF outflows, institutional investors, geopolitical tensions
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