Why did Bitcoin ETFs lose $731 million in 2 days before $21 million inflow?

In just two days, US spot Bitcoin ETFs experienced $731 million in withdrawals, with $487 million pulled out on October 7 and another $244 million on October 8. Bitcoin ETFs saw their first day of net inflows on October 9, however, with only $21 million flowing in. This was the smallest inflow since October 6, and it only recovered about 3% of the $731 million that left the funds on October 7 and 8.

The recovery did not signal that selling pressure had ended, as other major cryptocurrency funds continued to see withdrawals. Ethereum ETFs, in particular, faced significant losses, with $542 million in outflows over the week. Solana ETFs also experienced repeated withdrawals, totaling around $25 million. XRP ETFs, however, remained stable during the period, attracting $11.3 million in inflows and not experiencing any outflows.

The brief recovery in Bitcoin ETFs on October 9 did not suggest a lasting shift in investor sentiment, as continued losses in Ethereum and Solana ETFs indicated that demand for major crypto funds remained uncertain. The following trading sessions would provide a clearer picture of whether the market was recovering or if selling pressure would return.