Bitcoin ETFs Experience Largest Monthly Outflow Amid Escalating Middle East Tensions

Institutional investors seem to be reacting to escalating tensions in the Middle East, as U.S. spot Bitcoin exchange-traded funds (ETFs) witnessed nearly $243 million in withdrawals.

On October 1, the 11 U.S.-listed spot Bitcoin ETFs collectively experienced an outflow of $242.6 million, based on figures from Farside Investors. This marks the largest outflow in nearly a month, the previous being on September 3, when $288 million exited Bitcoin ETFs.

This outflow is also one of the most significant in the past five months, breaking a streak of eight consecutive trading days of inflows, which peaked at $494 million on September 27.

The Fidelity Wise Origin Bitcoin Fund saw the heaviest losses, with $144.7 million pulled out on October 1. ARK 21Shares Bitcoin ETF followed, seeing a withdrawal of $84.3 million.

Other notable outflows included $32.7 million from the Bitwise Bitcoin ETF, $15.8 million from VanEck Bitcoin ETF, and $5.9 million from the Grayscale Bitcoin Trust.

Several funds, including those from Invesco, Franklin, Valkyrie, WisdomTree, and Grayscale’s Mini Bitcoin Trust, recorded no movement.

In contrast, BlackRock’s iShares Bitcoin Trust bucked the trend, bringing in $40.8 million on the day, marking its 15th consecutive day without outflows.

The price of spot Bitcoin plummeted by nearly $4,000 following Iran’s missile attack on Israel on October 1. It reached a two-week low of $60,315 before slightly recovering to $61,620 at the time of writing.

Meanwhile, the nine U.S. spot Ether ETFs also faced withdrawals, with $48.6 million flowing out. Grayscale’s Ethereum Trust led the way, losing $26.6 million, followed by Fidelity’s Ethereum Trust, which saw $25 million in outflows. Combined, these two funds accounted for the majority of the losses in the Ether ETF space.

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