Bitcoin and Ethereum ETFs Outflows Hit $290M Amid Growing Tensions in the Middle East

Key Takeaways

• Bitcoin ETFs now hold $57.26 billion, or 4.77% of BTC’s market cap.
• Ethereum ETFs have $6.81 billion in net assets or 2.31% of ETH’s market cap.
• BlackRock’s BTC and ETH ETFs have combined cumulative inflows of $22.69 billion.
• Crypto and stock markets are down as conflict brews in the Middle East.

U.S. spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) have seen a premature end to their recent successes, shedding just over $290 million in combined net outflows following last night’s escalation of tensions in the Middle East.

Bitcoin ETFs

As per SoSoValue data, Bitcoin ETFs posted $242.53 million in outflows on Oct. 1, cutting its nine-day inflow streak, which raked in over $1 billion in net inflows.

Bitcoin ETF flows. Source: SoSoValue

The sole gainer for the day was BlackRock’s iShares Bitcoin Trust (IBIT), which secured $40.84 million in net inflows. With $21.54 billion in cumulative net inflows, IBIT is by far the best-performing BTC ETF on the market.

Leading today’s exits, Fidelity’s Wise Origin Bitcoin Fund (FBTC) was struck by $144.67 million in net outflows. ARK 21Shares Bitcoin ETF (ARKB) closely followed, shedding $84.35 million from its portfolio.

The Bitwise Bitcoin ETF (BITB) saw $32.7 million in net outflows, its highest since late July. VanEck’s Bitcoin ETF (HODL) saw a rare day of outflows, losing $15.75 million from its fund.

Finally, the Grayscale Bitcoin Trust (GBTC) saw a modest $5.9 million in net outflows. All remaining funds saw neutral flows.

Ethereum ETFs

According to SoSoValue data, Ethereum ETF exits totaled $48.52 million on Oct. 1.

Ethereum ETF flows. Source: SoSoValue

VanEck’s Ethereum Trust (ETHV) led the pack with a modest $2.74 million in net inflows. Though this may seem meager, ETHV is one of the smaller ETH ETFs on the market, and these inflows are the largest it has seen since early August.

Just behind it, the 21Shares Core Ethereum ETF (CETH) also made a rather rare appearance, bagging $1.25 million in net inflows. Having seen just two days of net inflows in July and a completely neutral run since CETH has seen most of its cumulative inflows gained from Sept. 25 and onwards.

As for exits, the Bitwise Ethereum ETF (ETHW) posted $895,650 in net outflows. Fidelity’s Ethereum Fund (FETH) saw its third and largest-ever day of exits, losing $24.97 million in outflows.

Finally, the Grayscale Ethereum Trust (ETHE) recorded $26.64 million in net outflows, bringing its cumulative net outflows to $2.93 billion.

Market Reaction

The escalating tensions in the middle have rocked crypto and stock markets. The Dow Jones, S&P 500, and Nasdaq fell around 1% following Iran’s attack on Israel.

Bitcoin tumbled roughly 4% to around $60,000 following Iran’s missile strike. Ethereum dropped around 6.5% to a low of $2,450. Since then, both BTC and ETH have cooled off from their decline. Exits from crypto ETFs may persist in the short term.