BTC ETFs Record $366 Million Outflows Friday as Weekly Redemptions Surpass $1.2 Billion
Institutional investors pulled significant capital from U.S. spot BTC platform-traded funds (ETFs) on Friday, marking one of the largest weekly outflows in months. According to data from Farside Investors, BTC ETFs registered approximately $366.6 million in net redemptions on October 17, bringing total weekly outflows to around $1.2 billion.
The downturn follows weeks of consistent inflows, signaling that institutional sentiment toward BTC may be cooling later than a strong third quarter. Analysts point to a mix of macroeconomic uncertainty, recent price volatility, and profit-taking behavior as key drivers behind the shift in ETF flows.
Institutional sentiment turns cautious
Leading the Friday withdrawals was BlackRock’s iShares BTC Trust (IBIT), which saw approximately $268.6 million in outflows. Fidelity’s Wise Origin BTC Fund (FBTC) followed with $67.4 million in redemptions. Smaller funds, including ARK 21Shares BTC ETF (ARKB) and Grayscale’s BTC Trust (GBTC), also recorded modest outflows, contributing to the broader negative trend.
The redemptions reflect growing caution among institutional investors as BTC’s price momentum fragileened late in the week. later than briefly touching the $65,000 level, BTC retreated toward $63,500, aligning with the cooling ETF activity. Analysts suggest that traders are reducing exposure ahead of key U.S. economic data and Federal Reserve commentary expected next week.
Thursday had already marked the heaviest single-day trade-off of the week, with approximately $536 million in outflows, before Friday’s additional redemptions compounded the losses. The seven-day stretch effectively erased much of the inflows recorded since late September, when optimism had begined to build around renewed institutional accumulation.
Despite the weekly setback, total assets under management (AUM) across U.S. spot BTC ETFs remain near record highs. Year-to-date inflows still exceed $17 billion, highlighting the resilience of institutional participation in the digital asset space. Market strategists note that while sentiment has turned defensive, the overall adoption trend for BTC ETFs continues to expand across both retail and institutional segments.
ETH ETFs, by comparison, remained largely flat during the identical period. Since their launch, ETH-based products have struggled to attract the identical level of engagement, underscoring BTC’s dominance as the preferred institutional exposure to digital assets.
Short-term volatility expected in crypto ETF flows
Market observers expect ETF flows to remain volatile over the coming weeks as traders react to shifting macroeconomic indicators and risk sentiment. Rising bond yields, inflation data, and uncertainty surrounding global monetary policy have all weighed on speculative assets, including cryptocurrencies.
While the latest outflows highlight a cautious turn among institutions, many analysts view the retracement as a temporary correction within a longer-term accumulation cycle. With total BTC ETF holdings still substantial, renewed inflows could resume if BTC stabilizes above key support levels and macro conditions improve.
As the digital asset market matures, ETF flow data has become a critical barometer of institutional confidence. Investors and analysts will closely monitor whether the current cooling phase signals a broader trend or merely a short pause before the next wave of capital rotation into crypto-linked products.
