US spot Bitcoin exchange-traded funds recorded approximately $635 million in net outflows on October 22 as Bitcoin traded near the estimated cost basis of the funds' holdings. The withdrawals marked the largest daily outflow since June 25 and reversed nearly 60% of the inflows the funds attracted over the previous three trading sessions.
BlackRock's iShares Bitcoin Trust (IBIT) led the selling with $254 million in withdrawals, followed by Fidelity's FBTC at $217 million. Together, the two funds accounted for approximately 74.2% of the day's net outflows. ARK Invest's ARKB shed $109 million, while Grayscale's GBTC and Bitwise's BITB lost $30 million and $27 million, respectively. Morgan Stanley's MSBT was the only fund to attract fresh capital, recording about $2 million in inflows.
The selling extended Bitcoin's recent struggle, with the cryptocurrency declining to as low as $80,841 during the reporting period. According to Glassnode's October 21 market report, US spot Bitcoin ETFs acquired their holdings at an average price of approximately $81,500, while corporate Bitcoin treasuries hold their coins at an estimated average cost of $80,200.
Market Context and Investor Sentiment
Simon-Peter Massabni, head of business development at XS.com, attributed the unstable flows to increasingly cautious investors seeking short-term trading opportunities rather than committing capital for extended periods. He noted that Bitcoin continues to find tentative support above $80,000, although buying momentum remains insufficient to establish a sustained recovery.
The latest withdrawals interrupted a brief recovery period. Bitcoin funds had attracted $527 million on October 19, $23 million on October 20, and $528 million on October 21. Thursday's selling reduced the week's net inflows to approximately $443 million.
Broader market pressures contributed to the selling. The Nasdaq Composite fell 2.6% on Thursday while the S&P 500 declined 1.21%, partly reflecting concerns about returns on heavy artificial intelligence infrastructure spending. Escalating Middle East hostilities and rising oil prices, with Brent crude trading above $110 a barrel, also unsettled investors.
Technical Levels and Corporate Treasury Weakness
Glassnode identified the True Market Mean near $77,600 as the next major downside reference if Bitcoin closes below $80,000. Holders' acquisition costs and concentrated selling orders between $85,000 and $87,500 could limit any recovery.
Corporate treasury accumulation has weakened considerably, with monthly purchases remaining below one-tenth of their November 2024 peak since June. This reduction has decreased another potential source of demand during market declines.
Ethereum ETF Outflows Accelerate
Ethereum has faced a more sustained withdrawal of ETF capital, with US-listed funds recording approximately $111 million in net outflows on October 22. BlackRock's ETHA lost $75 million, while its staking-focused ETHB product recorded $17 million in withdrawals. Grayscale's two Ethereum funds shed a combined $20 million, while Fidelity's FETH attracted about $2 million.
Ethereum ETF losses reached approximately $1,180 million in October, exceeding September's $832 million in inflows and reducing year-to-date net inflows to about $387 million. Massabni observed that institutional demand for Ethereum remains inconsistent despite occasional positive flow sessions. He noted that Ethereum's price recovery would require several consecutive sessions of sustained buying, with the cryptocurrency struggling to establish a firm base around $2,400.
