Spot Bitcoin ETFs Lose $463M Amid ‘Difficult’ Time for Markets

Spot Bitcoin exchange-traded funds (ETFs) experienced a $463 million outflow last week, marking a shift from the previous three-week trend of strong inflows. The net outflows totaled $462.7 million, as investors pulled money from the products over the last four trading sessions. The outflows accelerated on Thursday, with a withdrawal of $282.7 million, following withdrawals of $46.7 million on Tuesday and $120.2 million on Wednesday.

However, the outflows eased to $13.2 million on Friday, marking the first weekly reversal since mid-August.

The four-day losing streak occurred amidst a challenging market environment. Inflation has proven more persistent than anticipated, with the 10-year Treasury yield nearing 5% and Federal Reserve expectations shifting sharply. Marcus Levin, co-founder of XYO, attributed the negative impact to increased oil prices due to the Iran conflict and disruptions in key energy routes, which have added to inflationary pressures affecting risk assets.

Levin noted that the upcoming Federal Reserve FOMC meeting is particularly crucial, as continued redemptions after the decision could signal that investors are reducing exposure to macro and geopolitical risks, potentially signaling further market volatility. Meanwhile, Ethereum (ETH) ETFs attracted $196.9 million in net inflows during the same period, driven by significant buying activity on Friday.

As of the latest data, Bitcoin is trading at $78,328, having gained around 2% in the past day, while Ether is trading at $2,501, with only minor changes in value.