Outflows from Bitcoin and Ethereum ETFs in October Approach $1 Billion

In October, spot ETFs for Bitcoin and Ethereum in the US recorded nearly $1 billion in net outflows. A spot ETF is an exchange-traded fund that holds the asset itself, rather than futures on it, so its flows directly reflect investor demand for Bitcoin or Ethereum. According to Farside Investors, a service that tracks ETF fund flows, Bitcoin funds lost $244.1 million on Thursday, following outflows of $484.9 million on Wednesday. This marks the largest daily outflow since June 25.

Ethereum funds recorded $72.5 million in net outflows on Thursday, extending the series of outflows to eight consecutive trading sessions. A series of outflows means that investors withdrew more money from the fund than they contributed each trading day without interruption. During this period, which began on September 29, they lost about $641.3 million. Currently, net outflows in October amount to $407.4 million for Bitcoin ETFs and $578.9 million for Ethereum ETFs. In total, the funds recorded $986.3 million in net outflows for the month. Net outflow is the difference between withdrawals and deposits: if more money is taken out of the fund than is put in, the result is negative.

The outflows coincide with the weakening of Bitcoin's rally. On Thursday, the cryptocurrency fell to $80,427, according to CoinGecko, and was trading at $82,506 at the time of publication. According to Glassnode, an analytics platform that studies blockchain data and market metrics, an increase in spot trading volumes and ETF purchases would indicate that Bitcoin's recent breakout had real support. Spot trading involves transactions with the asset itself, as opposed to the derivatives market, where contracts on it are traded. So far, volumes are not increasing, and outflows from funds continue to accumulate for both Bitcoin and Ethereum.