Key Takeaways
- • U.S. spot Bitcoin ETFs posted net outflows of $228.6 million in the week, according to SoSoValue, extending a $681.1 million outflow the prior week and bringing the two-week drain to about $910 million.
- • The funds are down roughly $615 million for October per Decrypt's tracker, after opening the month with about $293 million in inflows.
- • Wednesday's $261.4 million redemption, the week's worst session, coincided with a hotter-than-expected September CPI reading of 3.7% year over year against a 3.6% forecast.
- • Cumulative net inflows since the January 2024 launch remain at $57.3 billion, per Decrypt's tracker, with total net assets of $104.29 billion per SoSoValue ($100.2 billion per Decrypt).
- • Bitcoin briefly fell below $80,000 on Thursday and roughly $950 million in leveraged crypto positions were liquidated over 24 hours, about 90% of them longs, according to CoinGlass.
Summary
U.S. spot Bitcoin ETFs continued to see investor redemptions this week, with net outflows of $228.6 million according to SoSoValue, following a $681.1 million drain the previous week. Decrypt's ETF tracker recorded $82.4 million in outflows on Friday, and outflows outnumbered inflows on three of the five trading days. Across the two weeks, roughly $910 million has left the funds, and October has turned negative, with the funds now down about $615 million for the month after opening with roughly $293 million in inflows.
The week was volatile. A $175.7 million inflow on Tuesday was reversed the following day by $261.4 million in redemptions, the worst session of the week. A modest $5.1 million inflow on Thursday preceded renewed selling on Friday. The slide began in earnest on October 7, when a $484.9 million exit marked the funds' worst day since June. Ethereum and Solana ETFs have also been in negative territory this month.
Macro conditions appear to be weighing on flows. Wednesday's selling coincided with a September consumer price index reading of 3.7% year over year, above the 3.6% forecast. A hotter-than-expected producer price print on Thursday revived market expectations of another Federal Reserve rate hike. As described in the report, higher rates would raise Treasury yields and make a near risk-free return of around 5% a tougher alternative to Bitcoin, while also increasing borrowing costs and strengthening the dollar, which tightens the credit leveraged crypto traders rely on.
Bitcoin briefly slipped below $80,000 on Thursday, and nearly $950 million in leveraged positions were liquidated over 24 hours, about 90% of them bullish longs, according to CoinGlass. The decline also pushed Bitcoin below the average ETF holder's estimated cost basis of about $82,300, according to Nexo analyst Iliya Kalchev, who spoke to Decrypt. Bitcoin closed Friday near $81,590, down from about $82,337 a week earlier.
Cumulative net inflows since the funds launched in January 2024 stand at $57.3 billion according to Decrypt's tracker. Total net assets are reported at $104.29 billion by SoSoValue and $100.2 billion by Decrypt's tracker. Because issuers report flows daily and institutions and financial advisers account for much of the capital, these figures are closely watched as a gauge of investor sentiment.
The week was volatile. A $175.7 million inflow on Tuesday was reversed the following day by $261.4 million in redemptions, the worst session of the week. A modest $5.1 million inflow on Thursday preceded renewed selling on Friday. The slide began in earnest on October 7, when a $484.9 million exit marked the funds' worst day since June. Ethereum and Solana ETFs have also been in negative territory this month.
Macro conditions appear to be weighing on flows. Wednesday's selling coincided with a September consumer price index reading of 3.7% year over year, above the 3.6% forecast. A hotter-than-expected producer price print on Thursday revived market expectations of another Federal Reserve rate hike. As described in the report, higher rates would raise Treasury yields and make a near risk-free return of around 5% a tougher alternative to Bitcoin, while also increasing borrowing costs and strengthening the dollar, which tightens the credit leveraged crypto traders rely on.
Bitcoin briefly slipped below $80,000 on Thursday, and nearly $950 million in leveraged positions were liquidated over 24 hours, about 90% of them bullish longs, according to CoinGlass. The decline also pushed Bitcoin below the average ETF holder's estimated cost basis of about $82,300, according to Nexo analyst Iliya Kalchev, who spoke to Decrypt. Bitcoin closed Friday near $81,590, down from about $82,337 a week earlier.
Cumulative net inflows since the funds launched in January 2024 stand at $57.3 billion according to Decrypt's tracker. Total net assets are reported at $104.29 billion by SoSoValue and $100.2 billion by Decrypt's tracker. Because issuers report flows daily and institutions and financial advisers account for much of the capital, these figures are closely watched as a gauge of investor sentiment.
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