Bitcoin exchange-traded funds (ETFs) have experienced their most significant single-day loss since the end of June, while Ethereum ETFs have faced a damaging streak, showing losses for 11 consecutive sessions. Investors are left wondering if the gains seen in October have evaporated and what implications this holds for the crypto market…
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On October 30, U.S. spot Bitcoin (CRYPTO:BTC) ETFs reported an alarming loss of $643.2 million, according to Farside Investors. No funds saw new investments that day, abruptly halting a trend of four straight days of capital inflows. This outflow pushed the total net assets of Bitcoin ETFs down to $98.14 billion, dipping below the $100 billion mark for the first time this month.
Ethereum (CRYPTO:ETH) ETFs faced a similar fate, with an outflow of $155.7 million, marking their 11th consecutive day of losses. Throughout October, Bitcoin ETFs experienced various inflow and outflow days, but recent trends raise concerns about how much of this month’s investment has already exited the market.
iShares Bitcoin Trust Spearheaded the $643 Million Exit
On October 30, the iShares Bitcoin Trust ETF (NASDAQ:IBIT), managed by BlackRock, saw the highest outflow, experiencing a loss of $233.7 million. The Fidelity Wise Origin Bitcoin Fund (CBOE:FBTC) followed with a loss of $201 million, while the ARK 21Shares Bitcoin ETF (CBOE:ARKB) faced a outflow of $129.5 million. The remaining $79 million in outflows stemmed from Grayscale and Bitwise funds.
A net outflow indicates that investors are selling more shares than they are purchasing. Consequently, this scenario often compels funds to sell or redistribute Bitcoin to their investors, increasing the overall supply in the market and exerting downward pressure on prices. IBIT fell by 5.1% to settle at $43.36 that day, and Bitcoin is now trading at $77,614, marking a 7.1% decrease for the month.
The outflow on October 30 surpassed the $635.5 million that left on October 22, representing the largest single-day outflow since June 25. Thus, October 30 became the most challenging day for Bitcoin ETFs since late June. Despite a net gain of $111.2 million from October 1 to October 28, the last two trading days have seen an outflow of $626.3 million, transforming October into a net loss of $515 million.
Weekly flows also experienced a setback, with the week concluding on October 30 recording a loss of $202.4 million, starkly contrasting with the $304.7 million inflow seen the previous week.
Ethereum ETFs Endured $1.6 Billion Loss in October with No Buyers in Sight
During October, Ethereum funds faced constant challenges, with spot Ethereum ETFs suffering a total loss of $1,606.9 million. For the week ending October 30, there was a significant $431.5 million outflow, up from the previous week’s $220.6 million.
The iShares Ethereum Trust ETF (NASDAQ:ETHA) led the charge of outflows on October 30, with $76.6 million leaving. Grayscale’s two Ethereum funds saw a drop of a combined $55.6 million, and another smaller fund experienced a $19.5 million withdrawal.
On that particular day, shares of ETHA decreased by 4.5% to $50.42, down 16.5% for the month. Investors have suffered losses due to both the withdrawals and declining prices.
The net assets of Ethereum ETFs plummeted from $17.71 billion at the beginning of October to $13.22 billion, losing nearly $4.49 billion due to capital outflows and the dip in Ethereum’s price. Currently, Ethereum is trading at $2,256, reflecting a 16% decrease this month and a staggering 54.4% drop from its peak value.
The downward trend affected smaller cryptocurrencies as well. Solana (CRYPTO:SOL) ETFs lost $10.8 million on October 30, accumulating a total loss of $71.5 million for the week and $143.7 million for the month, resulting in net assets of $1.40 billion.
In contrast, XRP (CRYPTO:XRP) ETFs displayed some resilience, experiencing just a $0.5 million loss on October 30. They wrapped up the week with a gain of $4.3 million and a total increase of $18.8 million for October, bringing their net assets to $1.42 billion, surpassing those of Solana ETFs.
Assessing the Losses in Bitcoin and Ethereum ETFs This October
For Bitcoin ETFs, all capital influx from October has vanished, and more, as just two days of selling turned a $111.2 million gain into a staggering $515 million loss. Conversely, Ethereum ETFs did not experience any gains, remaining negative throughout the month with losses reaching $1,606.9 million by October’s end.
The total flows for Bitcoin ETFs in the first week of November could provide vital insight into the future trajectory. These funds recorded inflows of $526.6 million on October 19 and $528.4 million on October 21. Should November’s total exceed the $202.4 million loss registered that week, October 30 might prove to be merely an outlier; ongoing outflows from IBIT and Ethereum’s continuous struggles could dictate withdrawal trends heading into the new year.
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