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- Bitcoin ETFs faced $1.23 billion in weekly outflows as prices slid sharply before a brief rebound.
- Traders treated the sell-off as a buying window while rate-cut hopes lifted crypto optimism again.
U.S. spot Bitcoin exchange-traded funds (ETFs) reported a total weekly outflow of $1.23 billion, the second-largest withdrawal since their launch in 2024. According to SoSoValue data, the figure represents a sharp turnaround from the previous week’s $2.7 billion inflow.
On Friday alone, Bitcoin ETFs registered $366.6 million in outflows. The largest fund withdrawal came from BlackRock’s iShares Bitcoin Trust, which saw $268.6 million in outflows.
Fidelity’s fund followed, losing $67.3 million, while Grayscale’s GBTC recorded $25 million in redemptions. Valkyrie reported a small outflow, and other issuers closed the week with no movement.
However, limited inflows were recorded during only one trading session, which took place on Tuesday, after which the trend reversed again.
Bitcoin Slump Adds to ETF Outflows
The market shift came as Bitcoin’s price fell from about $121,000 on October 10 to around $103,700 by October 17. After that, the digital currency started to recover. In the past 24 hours, Bitcoin has risen by 3.06% and is now trading at $111,071. Ethereum also followed the same trend, increasing by 3.27% to reach $4,052, showing that confidence is returning to the market.
Spot Ethereum ETFs also showed the volatility, with $311.8 million in outflows last week following a $488.3 million gain the week before. The correction occurred amid uncertainty over global policy and economic indicators that affected risk assets.
Crypto analyst Rachael Lucas of BTC Markets explained that,
The recent rebound in Bitcoin, now trading above $110,000, has been driven by a combination of institutional inflows and improving macroeconomic conditions.
She further stated that investors seem to be treating the recent sell-off as a buying opportunity, showing renewed confidence among traders.
Macro Shifts Influence Investor Behavior
The digital asset market is adjusting to recent global developments. These include the U.S. President Donald Trump’s announcement of new tariffs on China and growing concern about risky loans at regional banks. These events have temporarily weakened investors’ confidence in crypto-related products.
Lucas explained that market participants are now expecting a possible interest rate cut in October and an early end to Quantitative Tightening. She said,
Chair Jerome Powell acknowledged that while growth remains firmer than expected, labor market softness persists. This shift has eased bond yields and improved the liquidity environment for risk assets, including digital assets.
Despite the volatile backdrop, some financial leaders remain positive about the future prospects of the industry. Charles Schwab CEO Rick Wurster told CNBC that his company’s clients now own 20% of all crypto exchange-traded products in the United States.
Wurster stated that the use of crypto-related investment products has surged, noting that traffic to Schwab’s crypto site jumped 90% over the past year.
While last week’s $1.23 billion in withdrawals shows caution, the overall participation remains active. Traders are still closely tracking digital asset performance rather than exiting the market entirely.
