Bitcoin and Ethereum ETFs Lose $646M on October 7

Largest Bitcoin ETF outflow since June as institutional demand reverses

US Bitcoin and Ethereum ETFs recorded combined withdrawals of $646 million on October 7, marking the sharpest reversal in institutional cryptocurrency investment flows in recent weeks. Bitcoin ETFs lost $484.9 million, the largest single-day outflow since June 25, while Ethereum ETFs shed $160.9 million.

BlackRock’s iShares Bitcoin Trust (IBIT) led Bitcoin outflows with $207.7 million, followed by Fidelity’s FBTC at $105.1 million and ARK 21Shares’ ARKB at $101.7 million. BlackRock’s iShares Ethereum Trust (ETHA) accounted for $116.1 million of Ethereum outflows, with Grayscale’s ETHE contributing $25.8 million.

The outflows represent a dramatic deceleration from mid-September momentum. During Bitcoin’s rally from $76,000 to $87,000 in mid-September, ETFs averaged $341.7 million in daily inflows. Through October 6, that figure had collapsed to a $35 million daily average, a 90% decline. Over five trading sessions through October 6, cumulative net inflows totaled just $172.9 million.

BlackRock’s IBIT had been absorbing much of that slowing demand, recording $536.2 million in inflows over the five-session period while competing Bitcoin ETFs collectively posted $363.3 million in outflows. October 7 marked IBIT’s first major outflow day since the reversal began.

Ethereum ETF withdrawals have been particularly severe. Over seven consecutive trading sessions, Ethereum ETFs experienced approximately $569 million in outflows. The five largest outflow days totaled $506.3 million, the largest five-session loss since January.

Bitcoin closed below $83,000 on October 7, its lowest daily close in 20 days. The price now sits below the estimated flow-weighted average ETF cost basis of $84,318, according to Checkonchain data, pushing the aggregate position underwater for ETF investors. Ethereum traded near $2,500 during the period.

The timing coincided with rising US Treasury yields, a stronger dollar, and elevated oil prices. Ethereum’s decline was accompanied by growing demand for short exposure in derivatives markets, with traders holding negative perpetual futures funding rates, according to analysis from Bitfinex.

Weaker institutional inflows are leaving the broader altcoin market increasingly dependent on capital rotating among existing cryptocurrency positions rather than fresh institutional deployment.