Bitcoin ETFs Shed $729 Million in Two Days as Investors Reverse Course
Key Takeaways
- •U.S. spot bitcoin ETFs posted $729 million in outflows this week, with BlackRock, Fidelity, Morgan Stanley, and ARK 21Shares funds among those seeing significant withdrawals on Wednesday and Thursday.
- •The selling followed news that the Federal Reserve may raise interest rates, while surging oil prices after tanker attacks in the Strait of Hormuz and stalled U.S.-Iran talks added further market pressure.
- •Bitcoin traded near $82,688, down more than 3% over seven days, though it rebounded nearly 2% in the past 24 hours after approaching $90,000 just last week.
- •The cryptocurrency stands 34% below its all-time high of $126,080 reached in October, despite the month's historical reputation for strong returns, dubbed 'Uptober.'
- •Analysts increasingly point to bull-market evidence following August and September's rally, making upcoming ETF flow data and signals from the Fed and the Middle East key focal points for market watchers.
U.S. investors reversed course this week, cashing out $729 million from spot bitcoin exchange-traded funds and putting downward pressure on the price of the leading cryptocurrency.
Funds managed by BlackRock, Fidelity, Morgan Stanley, and ARK 21Shares all recorded significant outflows on Wednesday and Thursday, according to data from Farside Investors. Spot ETFs hold bitcoin directly and trade like stocks on U.S. exchanges, and their daily flow figures have become a closely watched barometer of institutional demand for the asset.
Investors began the week by selling close to $90 million in shares, then bought nearly $119 million on Tuesday. Outflows dominated the rest of the week, however, following news that the Federal Reserve may raise interest rates.
Other negative developments weighed on markets as well. The price of Brent crude jumped following renewed attacks on tankers in the Strait of Hormuz, according to Reuters, while U. President Trump hinted that talks with Iran weren't bearing fruit — a sign the war in the Middle East could continue, as reported by Middle East Eye.
Bitcoin's price recently stood at a little over $82,688, down more than 3% over a seven-day period. The leading cryptocurrency has rebounded slightly over the past day, jumping nearly 2% over 24 hours.
The coin was fast closing in on $90,000 as recently as last week, and investors had been expecting decent returns from the month dubbed “Uptober,” which has historically delivered for bitcoin speculators.
Bitcoin's price has been particularly sensitive to geopolitical headwinds this year — especially since the U.S. and Israel attacked Iran, leading to an oil price surge. Rising oil prices tend to lead investors to bet on the Federal Reserve raising interest rates, and higher rates mean less liquidity for the price of bitcoin to perform well.
That is not always the case, however: last month the Fed talked tough on getting inflation down and raised interest rates by a quarter of a percentage point, and bitcoin's price rose in the following days.
Bitcoin's price is 34% below the all-time high of $126,080 it touched in October. The cryptocurrency has spent most of 2026 in a bear market, but analysts are now increasingly pointing to evidence of a bull market following a rally in August and September. That disconnect between investor outflows and the analysts' more constructive read leaves the coming days' ETF flow data — alongside any further signals from the Fed on rates and from the Middle East — among the data points market watchers are focused on.
This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.
