Spot Bitcoin ETFs on three-day outflow streak, Ether ETFs rebound

Spot Bitcoin exchange-traded funds in the US witnessed a third consecutive day of outflow on October 10, while spot Ethereum ETFs recorded a modest but positive return after a day of inactivity.

According to data from SoSoValue, 12 spot Bitcoin ETFs recorded a total outflow of $120.76 million on October 10; this is a notable jump from the previous day’s debut of $40.56 million.

Fidelity’s FBTC ETF led the wave of Bitcoin ETF exits, exiting the fund with $149.5 million after a day of zero net flows. Other major funds followed suit, including ARK and 21Shares’ ARKB with an exit of $30.30 million, and Bitwise’s BITB with an exit of $6.16 million.

Even BlackRock’s IBIT, the largest Bitcoin ETF by net assets, broke a five-day streak of inflows with an outflow of $10.83 million, reflecting a broader cooling of investors’ appetite for Bitcoin.

Grayscale, another major player in the ETF space, saw outflows of $18.52 million and $21.16 million in both GBTC and Grayscale Bitcoin Mini Trust, respectively. Despite these negative flows, the other six Bitcoin ETFs remained neutral, neither contributing outflows nor seeing new interest from investors.

Market fears trigger sell-offs and liquidations

The increase in BTC outflows coincided with a 3% decline in the Bitcoin (BTC) price; This decline fell to a three-week low of $58,900 before recovering slightly to $60,602. The decline followed unexpected US inflation data that reignited fears that the Federal Reserve would pause interest rate cuts and added pressure to the cryptocurrency market.

This decline also led to liquidations of $198.6 million in the market, affecting more than 59,000 investors, according to data from Coinglass. Bitcoin long positions accounted for $53.3 million of these liquidations, while Ethereum traders lost $31.6 million during the same period.

As the sale progressed, fear in the cryptocurrency market also increased. The closely watched Crypto Fear and Greed Index fell to 32, its lowest level since mid-September, placing market sentiment firmly in “fear” territory.

Ethereum ETFs attract modest inflows amid BTC downtrend

Unlike Bitcoin, Ethereum ETFs saw a small but notable increase. Nine spot Ethereum ETFs recorded net inflows of $3.06 million on October 10, reversing zero net flows from the previous day.

BlackRock’s ETHA led the charge, attracting $17.85 million in new capital. Grayscale’s Ethereum Mini Trust followed with an inflow of $3.34 million, recording its first positive inflow since September 27.

However, these gains were partially offset by outflows from Grayscale’s ETHE, Bitwise’s ETHW, and Fidelity’s FETH, which saw redemptions of $10.37 million, $4.23 million, and $3.54 million, respectively. The other four Ethereum ETFs remained neutral and contributed neither inflows nor outflows.

At press time, Ethereum (ETH) was trading at $2,414 and moving sideways in a market largely dominated by Bitcoin’s volatility.