Isabella García
U.S. spot Bitcoin exchange-traded funds (ETFs) faced heavy redemptions last week, posting $1.23 billion in total outflows — their second-largest weekly outflow since inception in 2024, according to data from SoSoValue.
Friday alone accounted for $366.6 million in outflows, capping a volatile week for Bitcoin and signaling a sharp reversal from the $2.7 billion in net inflows recorded just one week earlier.
The largest outflow on record remains the $2.6 billion exodus seen during the week ending Feb. 28, highlighting how quickly market sentiment can shift amid macroeconomic uncertainty.
The spike in ETF outflows coincided with a period of extreme price volatility in the Bitcoin market. Between Oct. 10 and Oct. 17, Bitcoin plunged from roughly $121,000 to around $103,700, according to PRIME’s BTC price data.
However, the world’s leading cryptocurrency has since rebounded, climbing 4.2% in the past 24 hours to trade near $111,268 as of 2:45 a.m. ET Monday. Ethereum (ETH) also joined the rally, jumping 5% to $4,082, hinting at a broader recovery across digital assets.
Ethereum ETFs Also See Reversal in Sentiment
The bearish trend wasn’t limited to Bitcoin products. Spot Ethereum ETFs recorded $311.8 million in outflows last week, a stark contrast to the $488.3 million in inflows the week before.
Analysts say the synchronized outflows from both Bitcoin and Ethereum ETFs indicate investor caution ahead of major macro events, particularly the upcoming Federal Reserve policy decisions.
Traders Eye Fed Rate Cuts and Liquidity Boost
Market sentiment is beginning to shift toward expectations of a potential interest rate cut later this month, along with a possible early end to quantitative tightening.
“Chair Jerome Powell acknowledged that while growth remains firmer than expected, the labor market continues to soften,” said Rachael Lucas, crypto analyst at BTC Markets. “This change has lowered bond yields and improved liquidity conditions for risk assets, including digital currencies.”
Lucas added that if monetary easing accelerates, institutional demand for Bitcoin ETFs could return quickly, helping to stabilize inflows in the coming weeks.
