Bitcoin and Ethereum Spot ETF Markets Record $618.9 Million Capital Outflow, Spearheaded by BlackRock

The cryptocurrency market continues to experience significant capital withdrawals, particularly in the domain of Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs). On October 17, a staggering $618.9 million (approximately KRW 896.4 billion) was pulled out from these markets in a single trading day, with BlackRock leading the trend in capital outflows. This sizable shift underscores ongoing volatility and investor uncertainty surrounding crypto ETFs.

Bitcoin ETFs Witness Persistent Outflows

On October 17 alone, Bitcoin ETFs recorded net outflows totaling $386.6 million (approximately KRW 561.6 billion). While the scale of withdrawals marked a decline compared to the previous trading session's $530.9 million outflow (approximately KRW 770.8 billion), it was the third consecutive day of losses for Bitcoin ETFs. Since October 10, the market has sustained a persistent trend of capital withdrawal, interrupted only briefly on October 14.

Among the major players, BlackRock’s IBIT ETF ranked as the most affected, experiencing a single-day outflow of $268.6 million (approximately KRW 389.5 billion). Fidelity’s FBTC ETF followed suit, with $67.4 million (around KRW 97.7 billion) exiting the fund, alongside Grayscale’s GBTC ETF, which faced outflows amounting to $25 million (approximately KRW 36.2 billion). Valkyrie’s BRRR ETF also saw notable withdrawals, recording a net outflow of $5.6 million (around KRW 8.1 billion). However, seven other Bitcoin ETFs demonstrated minimal movement, maintaining a flat trend throughout the trading session.

Ethereum ETFs Experience Fourfold Surge in Outflows

Ethereum ETFs mirrored the unsettling capital outflow trend, reporting $232.3 million (approximately KRW 336.8 billion) in net withdrawals on the same day. This figure represents more than four times the value of the previous trading session’s outflows, which stood at $56.8 million (around KRW 82.4 billion). The Ethereum ETF market has now endured two consecutive days of declining capital amid broader investor concerns.

BlackRock again led the wave of withdrawals, with its ETHA ETF registering a substantial outflow of $146.1 million (approximately KRW 211.8 billion). Fidelity’s FETH ETF recorded net outflows of $30.6 million (about KRW 44.4 billion), followed by Grayscale’s ETHE ETF, which experienced withdrawals totaling $26.1 million (around KRW 37.8 billion). Bitwise’s ETHW ETF also faced significant losses, reporting a $20.6 million (roughly KRW 29.9 billion) net outflow.

Other notable Ethereum ETFs affected include VanEck’s TETH ETF, which saw $4.2 million (approximately KRW 6.1 billion) withdrawn, and Grayscale’s ETH ETF, reporting a $4.7 million (around KRW 6.8 billion) outflow. In contrast, three Ethereum ETFs maintained a flat trend without experiencing notable changes in capital.

Investor Sentiment Points to Broader Market Uncertainty

The sharp capital flight across Bitcoin and Ethereum ETFs highlights the deepening sense of unease among investors within the cryptocurrency realm. Regulatory developments and new institutional products have yet to alleviate concerns about market stability, even as major players like BlackRock, Fidelity, and Grayscale dominate fund movements. This latest wave of outflows signals caution in institutional sentiment, suggesting that market participants are closely monitoring macroeconomic and regulatory factors before committing to crypto investments.

As these trends unfold, tracking the performance of ETFs and associated market sentiment will be essential for predicting future institutional activity in the cryptocurrency space.