- Bitcoin ETFs experienced outflows totaling $243 million as the market declined following Iran’s missile strike on Israel.
- The BTC price also decreased, hitting lows of $60,300 before bouncing back above $61,000.
On October 2, 2024, Bitcoin exchange-traded funds witnessed net outflows for the first time in a fortnight, with $243 million leaving the market.
This occurred following a significant drop in the price of Bitcoin (BTC) on Tuesday, as geopolitical tensions in the Middle East escalated with Iran’s assault on Israel. Institutional investors expressed heightened concern as the situation in the region intensified, leading to spot Bitcoin ETFs facing outflows for the initial time since September 18.
Bitcoin ETFs end streak of inflows
The outflows on October 1 marked the end of an impressive eight-day inflow streak for the US spot BTC ETFs market. This marked the largest outflow from Bitcoin ETFs since over $287 million was withdrawn from the market on September 3, when outflows also lasted for eight consecutive days.
With the exception of BlackRock’s IBIT, which gained over $40.8 million, all other ETFs either recorded outflows or remained stagnant.
Fidelity’s FBTC topped the list with a negative flow exceeding $144.7 million, while Ark 21Shares’ ARKB saw a reduction of more than $84.3 million. Meanwhile, Grayscale’s Mini Bitcoin Trust, as well as ETFs from Franklin, Invesco, Valkyrie, and WisdomTree reported no net flows.
BTC price dipped to $60.3k
During these fluctuations, BTC’s value fell by over 4%, reaching lows of $60,300 across major crypto exchanges. From prices above $64,000, this represented a loss of nearly $4,000 before discovering new support.
This drop was the steepest fall for Bitcoin since September 6, when BTC plummeted from above $56,170 to around $52,500.
As the BTC price decreased, a prominent whale offloaded over $46 million worth of BTC on Binance. This whale, according to Spot On Chain, had accumulated 3,933 BTC valued at over $234 million between August 29 and September 15, 2024.
Despite this substantial sell-off, the whale continues to hold 9,736 bitcoins, worth upwards of $601 million.
Bitcoin has since managed to trade above $61,000.
