Bitcoin ETFs See Record Outflows,but Market Signals Recovery
U.S. Bitcoin ETFs faced a tough week, losing $1.23 billion. Friday alone saw $366.6 million in outflows. Despite this, shrinking exchange supply hints at a possible rebound.
Spot Bitcoin ETFs in the U.S. experienced significant outflows last week. The total loss was $1.23 billion, with Friday accounting for $366.6 million alone. BlackRock’s iShares Bitcoin Trust lost $268.6 million, while fidelity’s fund shed $67.2 million. Grayscale’s GBTC saw $25 million exit.Minor outflows were minor from the Valkyrie ETF, with other products remaining stable.
These outflows came after a historic liquidation event that wiped out over $19 billion in leveraged positions.The crash was sparked by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports and threats of export controls, causing panic selling.
However, there’s a glimmer of hope.Bitcoin’s supply on exchanges has hit a six-year low. over 45,000 BTC, worth about $4.81 billion,have been withdrawn as early October.This reduction in exchange reserves often leads to less selling pressure and can pave the way for price recovery.
Analysts like Scott Melker believe this event forces the market to reprice risk but doesn’t signal a bear market. Public companies are adding BTC to their balance sheets, and Luxembourg made Eurozone history. CME is preparing for 24/7 trading, and stablecoin issuers are growing rapidly.
despite the largest liquidation in crypto history, October is still holding on. This resilience suggests underlying market strength.
