Originally published on: October 02, 2024
As tensions in the Middle East continue to escalate, institutional investors are pulling out of United States spot Bitcoin exchange-traded funds, resulting in a staggering outflow of nearly $243 million.
Data from Farside Investors shows that eleven US spot Bitcoin ETFs witnessed a combined outflow of $242.6 million on October 1, marking the largest outflow in almost a month. This reverses a trend of inflows that had been increasing for eight consecutive trading days, peaking at $494 million on September 27.
The Fidelity Wise Origin Bitcoin Fund experienced the most significant outflow of $144.7 million on October 1, followed by the ARK 21Shares Bitcoin ETF losing $84.3 million. The Bitwise Bitcoin ETF, VanEck Bitcoin ETF, and Grayscale Bitcoin Trust also saw notable outflows of $32.7 million, $15.8 million, and $5.9 million respectively.
Among the ETFs, BlackRock iShares Bitcoin Trust was the only one with positive flows, recording $40.8 million for the day, marking the 15th consecutive day without outflows.
The outflows coincide with a drop in spot Bitcoin prices, which plunged nearly $4,000 following Iran’s missile attack on Israel on October 1. Bitcoin fell to a two-week low of $60,315 before rebounding to $61,620.
In addition to Bitcoin ETFs, US spot Ether ETFs also experienced outflows on October 1, with a total of $48.6 million exiting these products. Grayscale’s Ethereum Trust led the losses with a $26.6 million outflow, followed by the Fidelity Ethereum Trust losing $25 million.
With tensions in the Middle East causing market volatility, institutional investors are closely monitoring the situation and adjusting their investment strategies accordingly.
