Bitcoin ETFs see biggest outflow in a month as Middle East tensions surge

Institutional investors appear to have been spooked over rising tension in the Middle East, with United States spot Bitcoin exchange-traded funds clocking almost $243 million in outflows.  

The eleven US spot Bitcoin ETFs saw aggregate outflows of $242.6 million on Tuesday, Oct. 1, according to data from Farside Investors. This is the largest outflow for almost a month, with Sept. 3 seeing $288 million leaving BTC ETFs.

It is also the third-largest outflow day over the past five months, reversing an eight-consecutive trading day trend of inflows that topped out at $494 million on Sept. 27. 

The Fidelity Wise Origin Bitcoin Fund saw the largest outflow, $144.7 million, on Oct. 1, followed by the ARK 21Shares Bitcoin ETF, which lost $84.3 million.

The Bitwise Bitcoin ETF had an outflow of $32.7 million, while the VanEck Bitcoin ETF lost $15.8 million, and the Grayscale Bitcoin Trust dropped $5.9 million. 

There were zero flows for Invesco, Franklin, Valkyrie, WisdomTree, and Grayscale’s Mini Bitcoin Trust. 

BlackRock iShares Bitcoin Trust was the only one to post positive flows, recording $40.8 million for the day — marking the 15th consecutive day of non-outflow for the ETF. 

Spot Bitcoin (BTC) prices plunged almost $4,000 in the wake of Iran’s missile attack on Israel on Oct. 1. The asset fell to a two-week low of $60,315 before recovering to $61,620 at the time of publication. 

Related: Bitcoin tanks, gold rebounds as Israel vows Iran ‘will pay’ for attack

Meanwhile, the nine US spot Ether ETFs also registered another day of outflows, with an aggregate of $48.6 million exiting the products. 

Grayscale’s Ethereum Trust has continued to lead the bleed, shedding a further $26.6 million on Oct. 1. The Fidelity Ethereum Trust lost a similar $25 million, with the pair making up the bulk of the losses.

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