U.S. spot Bitcoin ETFs saw massive withdrawals on Tuesday, October 1st, as Bitcoin fell below $61,000, owing to growing geopolitical concerns in the Middle East. Farside Investors data indicated that Bitcoin ETFs had a combined outflow of $242.6 million, the second-largest single-day outflow in over a month. This comes after BTC ETFs had a $288 million outflow on September 3rd.
The significant outflows also broke an eight-day string of inflows for Bitcoin ETFs, which had seen $494 million invested in these instruments on September 27th. During this time, analysts verified the rising optimistic mood, with $365 million streaming into Bitcoin ETFs the day prior.
Also Read: BlackRock commends Bitcoin as the global monetary option in the rising Fiat anxiety
Fidelity and ARK Experience Redemptions while BlackRock Goes Against the Trend
According to data from Farside Investors, Fidelity’s FBTC led the outflows, losing $144.7 million, accounting for over half of the day’s total outflows. ARK 21Shares Bitcoin ETF followed, with $84.3 million in losses, while Bitwise Bitcoin ETF registered a $32.7 million outflow. Other Bitcoin ETFs, including VanEck and Grayscale, also saw significant losses of $15.8 million and $5.9 million, respectively.
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Despite the overall downturn, BlackRock’s iShares Bitcoin Trust (IBIT) stood out, bucking the trend with a $40.8 million inflow on Tuesday. IBIT also was above average for the third day in a row, and this inflow indicates the 15th trading day in a row when IBIT did not show an outflow, meaning that investors still trust BlackRock’s further strategies and actions. It also evidenced that with oversold conditions amid a volatile market, IBIT was the only U.S. spot Bitcoin ETF that posted positive accessions of funds.
Geopolitical Risk and its Impact on Share Price
Tuesday’s redemptions and Bitcoin’s drop in value were primarily blamed on the worsening conflict in the Middle East, especially Iran’s missile attacks on Israel. The price of Bitcoin fell more than 6% within hours, dipping to $60,164—its lowest level since September 18. The dip, however, was met with some recovery, with Bitcoin trading at $61,718, helped by reports of BlackRock purchasing 660 Bitcoins during the price drop.
Conclusion
The significant outflows from Bitcoin ETFs reflect growing concerns over geopolitical tensions, but BlackRock’s continued inflows indicate that some investors remain optimistic about Bitcoin’s future. As the cryptocurrency market reacts to global events, investor sentiment remains divided, with BlackRock’s bullish stance offering a notable contrast to broader market trends.
Also Read: Bitcoin Faces Strong Selling Pressure as Whales Drive Price Toward Key Support Levels
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.