Bitcoin ETFs Experience $530.9 Million in Outflows Amid Market Volatility

Bitcoin ETFs experienced a combined outflow of $530.9 million, led by Ark Invest's ARKB with $275.2 million withdrawn, followed by Fidelity's FBTC at $132 million and Grayscale's GBTC at $45 million. Ethereum ETFs also saw net outflows, but BlackRock's ETHA attracted $46.9 million of new capital. The outflows coincided with Bitcoin's decline to $105,396.98, a 4.14% drop over 24 hours.

Bitcoin ETFs experienced a significant outflow of $530.9 million on October 16, led by ARK Invest's ARKB with $275.2 million withdrawn, followed by Fidelity's FBTC at $132 million and Grayscale's GBTC at $45 million, according to Decrypt. This exodus comes amidst a broader market downturn, with Bitcoin's price declining to $105,396.98, a 4.14% drop over 24 hours.

The outflows were driven by several factors, including President Donald Trump's announcement of 100% tariffs on Chinese technology imports, which triggered a global flight to safety and a strengthening of the U.S. dollar index, according to Finbold. Additionally, the postponement of several spot ETF approvals by the SEC, including those for Solana and XRP, further contributed to market uncertainty and institutional capital flight.

Despite the outflows, Ethereum ETFs saw net inflows, with BlackRock's ETHA attracting $46.9 million of new capital. This disparity suggests that while Bitcoin ETFs are experiencing significant outflows, Ethereum ETFs are attracting new capital, possibly due to differing investor sentiments and risk appetites.

The Bitcoin ETF outflow streak may continue to be influenced by upcoming catalysts, such as the Federal Reserve's October 29 FOMC meeting and the ongoing Q3 earnings season. Analysts suggest that market exuberance needs to be supported by revenue and cash flow growth in U.S. markets for the outflow trend to abate.