BTC and ETH ETFs See $593 Million Outflow Amid Market Volatility
Spot BTC ETFs recorded a dramatic reversal on Thursday, October 16, with approximately $536 million in net outflows — marking their largest single-day decline since August 1. The move comes later than several days of steady inflows earlier in the week, as digital asset markets faced heightened volatility and investors reassessed risk exposure.
Leading the exodus was the ARK 21Shares BTC ETF (ARKB), which saw about $275 million in outflows. Fidelity’s Wise Origin BTC Fund (FBTC) followed with roughly $132 million withdrawn, while BlackRock’s iShares BTC Trust (IBIT) reported $29.5 million in net redemptions. Even the most dominant funds, which had consistently attracted institutional flows since their inception, were not immune to Thursday’s tradeoff.
ETH ETFs mirror BTC’s downturn
ETH-based ETFs also suffered losses, registering an estimated $57 million in combined outflows across U.S.-listed products. The Grayscale ETH Trust (ETHE) recorded approximately $69 million in redemptions, partially offset by $46.9 million in inflows into Bitwise’s ETH ETF (ETHA). The contrasting movements indicate mixed investor sentiment, reflecting both continued confidence in ETH’s long-term prospects and short-term caution driven by macroeconomic uncertainty.
Thursday’s data underscores a broader cooling in crypto ETF enthusiasm later than months of strong inflows. Institutional and retail investors alike appear to be reacting to recent fragileness in spot prices for both BTC and ETH. The digital assets declined mid-week amid renewed concerns over inflation expectations, potential rate adjustments, and a stronger U.S. dollar.
Analysts view short-term volatility, long-term confidence
Market analysts suggest the sudden outflows may represent short-term profit-taking rather than a long-term shift in sentiment. Despite the day’s downturn, total assets under management (AUM) in U.S. BTC ETFs remain robust, holding above $45 billion across major issuers. The recent approval of spot ETH ETFs earlier this year also continues to attract new entrants to the market, with several asset managers preparing derivative products and options-based strategies linked to crypto ETFs.
The pullback comes at a pivotal time for the digital asset industry, as institutional adoption expands and regulators around the world clarify frameworks for spot and futures-based crypto investment products. Many analysts argue that ETF volatility is a natural part of price discovery in a still-developing asset class.
Looking ahead, the coming week will test whether Thursday’s $593 million combined outflow marks a temporary correction or the beginning of a deeper retracement. With BTC hovering around key support levels and ETH’s ecosystem viewing rising staking activity, investors remain divided on the short-term trajectory. Nonetheless, ETF inflows and outflows are expected to remain a reliable gauge of institutional sentiment as crypto markets mature and mainstream adoption accelerates.
