Spot Bitcoin ETFs record second consecutive outflow day amid geopolitical uncertainty

US spot Bitcoin exchange-traded funds experienced an outflow for the second day in a row on October 2, as the price of Bitcoin fell below $61,000 due to rising tensions in the Middle East.

According to SoSoValue data, 12 spot Bitcoin ETFs listed in the US recorded a net outflow of $91.76 million, following the withdrawal of $242.53 million the previous day.

ARK 21Shares’ ARKB fund led the outflows, posting a loss for the third day in a row, with $60.26 million exiting the fund. Grayscale’s flagship GBTC followed closely behind, recording an outflow of $27.31 million, bringing its total withdrawals since inception to $20.12 billion.

BlackRock’s IBIT ETF, in particular, saw its first negative flow in almost a month, with $13.74 million withdrawn. While the fund has still managed to attract $21.52 billion in inflows since its launch, this marks a shift from its previous strong performance. Bitwise’s BITB also experienced significant outflows, leaving the fund with $11.51 million.

In contrast, Fidelity’s FBTC ETF remained the only outlier on the day, reporting inflows of $21.08 million, partially offsetting the broader outflow trend in the market.

Overall trading volume across the 12 Bitcoin ETFs dropped significantly, falling to $1.66 billion on October 2 from $2.53 billion the previous day. Despite this recent downturn, these funds have attracted cumulative net inflows of $18.53 billion since their launch; This suggests that long-term institutional interest in Bitcoin ETFs remains resilient.

Bloomberg Senior ETF Analyst Eric Balchunas recently noted that BlackRock’s IBIT and Fidelity’s FBTC are the best performers in terms of assets under management among ETFs launched since 2020. Both funds were launched in the wake of the 2022 bear market; This is indicative of the increasing institutional focus on Bitcoin despite its dominance. market volatility.

Bitcoin price under pressure as geopolitical risks increase

The recent breakout wave parallels the price struggles of Bitcoin (BTC). The cryptocurrency dropped as low as $60,100 on October 2 before recovering to just over $61,300. Ongoing tensions between Israel and Iran, especially in light of Israel’s anticipated response to the Iranian attack, have intensified market instability and increased downward pressure on Bitcoin.

Market analysts have expressed concerns about further downside risks.

Analyst Ali predicts a potential correction of over 15 percent and predicts that Bitcoin could see a deeper decline towards $52,000 if it fails to sustain the $60,900 support.

Another prominent market commentator, Crypto Capo, warned that Ethereum could fall to $1,800 if Bitcoin reaches that level, signaling broader weakness in the cryptocurrency market.

Ether ETFs buck the trend with inflows

While Bitcoin ETFs continue to struggle, US spot Ether ETFs saw a reversal in flows, recording net inflows of $14.45 million on October 2, following two days of outflows in a row.

BlackRock’s ETHA fund led the recovery with an inflow of $18.04 million after a day of inactivity, while Franklin Templeton’s EZET ETF attracted $1.81 million, its first inflow since mid-August.

However, Grayscale’s ETHE continued to experience an outflow with $5.4 million withdrawn on the same day. The remaining Ether ETFs saw zero flows on the day.

At the time of publication, Ethereum (ETH) was trading at around $2,386, down 3.8%; as the broader cryptocurrency market continued to face pressure from geopolitical events and investor uncertainty.