TLDR
- Bitcoin ETFs recorded a net weekly outflow of $1.23 billion, marking the second-largest withdrawal in 2024.
- The outflows followed a previous weekly inflow of $2.7 billion, showing a sharp reversal in investor behavior.
- On Friday alone, Bitcoin ETFs saw $366.6 million withdrawn, ending a highly volatile trading week.
- Bitcoin’s price dropped from $121,000 to $103,700 within a week but later recovered to $111,268.
- Spot Ethereum funds also recorded $311.8 million in net outflows after a previous week of strong inflows.
Bitcoin ETFs posted a net weekly outflow of $1.23 billion, marking their second-largest exit since launching in 2024. The previous week recorded $2.7 billion in inflows, highlighting a rapid investor reversal. Friday alone saw $366.6 million pulled out, capping a highly volatile trading week.
Bitcoin ETFs Face Sharp Withdrawals Amid Price Swings
Bitcoin ETFs experienced massive withdrawals as Bitcoin’s price fell from $121,000 on October 10 to $103,700 by October 17. That sharp drop triggered concerns, which fueled fund outflows across multiple issuers throughout the week. However, Bitcoin rebounded by 4.2% over 24 hours to reach $111,268 by Monday morning.
This week’s $1.23 billion outflow was second only to the $2.6 billion recorded in the week ending February 28. The high withdrawal volume points to rising uncertainty in the digital asset market. Still, Bitcoin ETFs remained active, with some investors holding firm amid the drop.
Bitcoin ETFs showed instability, yet analysts remain focused on broader market signals impacting digital assets. BTC Markets crypto analyst Rachael Lucas said, “Liquidity conditions have improved due to lowered bond yields and softer labor market data.” Her remarks suggest changing macro trends may slow further outflows.
Ethereum ETFs Also Register Significant Losses
Spot Ethereum funds reported net outflows of $311.8 million last week, contrasting with the prior week’s $488.3 million in inflows. Ethereum’s price fell earlier but rose 5% over the weekend, reaching $4,082 by Monday. Despite pressure, some investors returned, pushing values higher during recovery sessions.
Like Bitcoin ETFs, Ethereum funds also felt the effects of volatility and macroeconomic speculation. Rising expectations of an interest rate cut supported short-term recovery. Markets responded positively to signs of Federal Reserve easing.
Federal Reserve Chair Jerome Powell acknowledged slowing labor trends while maintaining a positive outlook on growth. That led traders to price in a potential policy shift. Consequently, digital asset markets responded with renewed optimism during the weekend.
Bitcoin ETFs continue to reflect market sentiment as macroeconomic factors shape capital movement across digital asset products. Improved liquidity conditions and rate cut expectations contributed to Bitcoin’s weekend rebound. Ethereum followed, signaling growing confidence despite recent outflows and price volatility.
