US spot Bitcoin and Ethereum exchange-traded funds experienced their sharpest redemptions in months as the broader digital asset market continued its downward trend.
Figures from SoSoValue reveal that the 12 approved US Bitcoin ETFs shed $484.9 million on Oct. 7, marking their highest single-day outflow since June 25. BlackRock’s iShares Bitcoin Trust (IBIT) paced the exits with $207.7 million, trailed by Fidelity’s FBTC at $105.1 million and ARK 21Shares’ ARKB at $101.7 million.
At the same time, Ethereum ETFs posted $160.9 million in withdrawals, elevating their five-day losses to $506.3 million, the highest figure recorded since January.
BlackRock’s ETHA drove $116.1 million of Wednesday’s outflows, while Grayscale’s ETHE shed $25.8 million. These products have now suffered seven straight sessions of net withdrawals, accumulating roughly $569 million in exits.
Combined, both ETF sectors dropped about $646 million on Wednesday as Bitcoin sank to a 20-day daily low beneath $83,000, and Ethereum dropped toward $2,500 over the same timeframe.
Significantly, this price movement occurred alongside climbing US Treasury yields, a climbing dollar, and high oil prices, which piled additional pressure onto risk assets.
ETF demand was weakening before the latest withdrawals
These recent outflows came on the heels of softening institutional appetite that analysts at Bitfinex had highlighted prior to the Wednesday selloff.
Within an Oct. 7 report, the analysts pointed out that Bitcoin ETF momentum had turned erratic, with capital inflows cooling dramatically following the purchasing wave that fueled September’s market recovery.
Daily net inflows sat at an average of $341.7 million while Bitcoin rallied from $76,000 to $87,000 in mid-September. That metric later plummeted to roughly $35 million per day across the five sessions leading up to Oct. 6, capturing a cumulative net inflow of $172.9 million.
Furthermore, remaining demand clustered heavily inside BlackRock’s IBIT, which pulled in $536.2 million across those five sessions while rival Bitcoin funds collectively shed $363.3 million.
This widening gap left the marketplace heavily dependent on a single product to balance out redemptions elsewhere—a cushion that evaporated when IBIT succumbed to Wednesday’s selloff.
This market shift follows Bitcoin dropping beneath the estimated average entry cost of ETF participants.
Relying on Checkonchain metrics, Bitfinex pegged the flow-weighted average ETF cost basis at $84,318. The researchers noted that daily inflows historically tapered off toward about $65 million as Bitcoin neared the collective breakeven mark for these investors.
Wednesday’s finish below $83,000 dragged Bitcoin underneath that vital line, creating the risk that ongoing drops might trigger extra redemptions as market participants attempt to mitigate losses.
While this metric fails to capture individual entry points, it serves as a reliable measure for the profitability of money invested via the funds.
Ethereum continues to display separate signs of fading demand. Aside from continuous ETF redemptions, CryptoSlate previously covered rising interest in short exposure across the derivatives sector, where traders holding short positions are paying longs via negative perpetual futures funding rates.
This positioning indicates that bearish market participants are increasingly prepared to pay fees to sustain bets on additional downward price action, compounding the stress visible in Ethereum ETF withdrawals.
Bitfinex additionally cautioned that a lack of robust institutional inflows leaves the broader altcoin sector heavily reliant on money circulating strictly within existing cryptocurrency holdings.
Such a dynamic could leave lower-cap tokens particularly vulnerable if Bitcoin’s downward momentum accelerates, as investors looking to de-risk pull capital out of altcoins entirely instead of shifting it into alternative digital assets.
FAQs
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How much did US spot Bitcoin ETFs lose on Oct. 7?
The 12 listed US Bitcoin ETFs lost $484.9 million on Oct. 7, which was their largest single-day outflow since June 25.
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Which fund led the Bitcoin ETF outflows?
BlackRock’s iShares Bitcoin Trust (IBIT) led the Bitcoin withdrawals with $207.7 million.
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How much did Ethereum ETFs lose during their consecutive outflow streak?
Ethereum ETFs experienced seven consecutive trading sessions of outflows, totaling approximately $569 million.
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What was the estimated flow-weighted average ETF cost basis for Bitcoin?
According to Bitfinex and Checkonchain data, the flow-weighted average ETF cost basis was estimated at $84,318.
