- Bitcoin ETFs witnessed significant outflows totaling $243 million due to market downturns influenced by geopolitical tensions.
- Bitcoin prices dipped to $60,300 before making a slight recovery above $61,000.
On October 2, 2024, Bitcoin exchange-traded funds (ETFs) experienced their first net outflows in two weeks, totaling $243 million. This downturn coincided with a notable drop in Bitcoin (BTC) prices, attributed largely to escalating geopolitical issues in the Middle East, including Iran’s missile activities against Israel.
Bitcoin ETFs Face Outflows
The outflows on October 1 marked the end of an eight-day streak of inflows for the US spot Bitcoin ETFs market. This exodus reflects the most substantial withdrawals since September 3, when over $287 million exited the market.
Besides BlackRock’s IBIT, which surprisingly gained inflows of over $40.8 million, all other Bitcoin ETFs registered either outflows or no net change in their standings.
Top Performing ETFs
- Fidelity’s FBTC: Experienced $144.7 million in outflows.
- Ark 21Shares’ ARKB: Saw a drop of more than $84.3 million.
- Grayscale’s Mini Bitcoin Trust: Reported zero net flows.
- Other ETFs: Franklin, Invesco, Valkyrie, and WisdomTree also showed no net activity.
Bitcoin Price Fluctuations
Amid these developments, Bitcoin’s price fell over 4%, reaching a low of $60,300 on various major exchanges. This represented a significant retreat from recent highs above $64,000, indicating a potential shift in market sentiment.
This decline marked the steepest drop for Bitcoin since early September, when prices fell sharply from over $56,170 to below $52,500.
Further compounding these market shifts, a notable whale made headlines by selling over $46 million worth of BTC on Binance. According to Spot On Chain, this large trader had acquired 3,933 BTC — valued over $234 million — in a series of purchases between August 29 and September 15, 2024. Despite the significant disposal, the whale retains a holding of 9,736 Bitcoins, valued at approximately $601 million.
As it stands, Bitcoin has stabilized, trading above $61,000.