Investors Flee Bitcoin ETFs, $361M Gone in Days
So much for “Uptober” magic. Instead of the usual pump, Bitcoin ETFs are seeing a sharp, unexpected dump. Investors yanked $361.2 million out of Bitcoin exchange-traded funds (ETFs) in just three days, according to data from Farside Investors. The sudden outflow comes right after a wave of cash poured into the funds last week, totaling more than $1 billion.
This kind of turbulence is rare, and even seasoned market watchers didn’t expect it. October, often hailed as a bullish month for crypto, has kicked off in the red. Just when Bitcoin’s price had recovered from a shaky September, the market’s now back on its toes. Bitcoin’s price dipped under $60,000 but bounced back to $62,200, up over 3% today. But with so much capital running for the door, traders are left wondering if this is a temporary storm or something deeper.
Geopolitical Tensions Spook Investors
But why did the outflows happen now? Analysts say the noise from global geopolitical tensions is shaking up risk appetite. When political dramas escalate, investors start eyeing safe-haven assets like gold or U.S. treasuries, ditching risky ones like Bitcoin. It’s not that Bitcoin’s lost its shine, but safe plays look better during chaotic times.
Firms like BlackRock, VanEck, and Fidelity—who opened the floodgates with their Bitcoin ETFs—aren’t immune to the shift. Their products saw the rush of cash stall and then reverse, as investors decide to back off.
Bitcoin ETFs Slowed, but Not Out
Still, Bitcoin hasn’t fully cracked under the pressure. Despite the ETF outflows, its price has been holding up—climbing more than 3% on Thursday after a brief dip. That’s the same Bitcoin ETF that helped push the asset to a March all-time high of $73,737 when institutional interest surged. So, even if big-money traders are retreating for now, Bitcoin might just be biding its time.
Investors remain glued to their screens, waiting to see if “Uptober” will live up to its name—or if the chill will continue.
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