U.S. Bitcoin Funds Record $635.6 Million in Outflows, Biggest Exodus Since June
Key Facts
U.S. spot Bitcoin exchange-traded funds recorded net outflows of $635.6 million on October 22, their largest daily exodus since June, according to Farside Investors data cited by The Block. That followed one day after the funds attracted $524.8 million on October 21, quickly reversing the flow from inflows to outflows. Data for October 23 showed a further $137.9 million in outflows, but that day's figures were incomplete in Farside's table when published. The selling wave was thus concentrated in two consecutive sessions after strong inflows in the previous session. The Block said Thursday's outflows reversed Wednesday's inflows, as the move came amid a broader retreat in risk assets.
BlackRock's IBIT led the outflows on October 22, with $254.1 million withdrawn, followed by Fidelity's FBTC with outflows of $217.5 million. ARKB, associated with Ark Invest and 21Shares, recorded $109.4 million in outflows. In the opposite direction, Morgan Stanley's MSBT was the only fund mentioned to attract money, with inflows of $2.3 million. The figures show that the daily net outflow accompanied mixed moves across products, with the largest outflows concentrated in the top three funds. The Block described the day's total as the largest since June, highlighting the scale of the reversal compared with the previous day's inflows.
The market pressure was reflected in Bitcoin's price, which fell to about $81,500 on the morning of October 23, down 3.4% over 24 hours, according to The Block. The coverage linked the decline to a sell-off that spread from Wall Street stocks to Asian equities, amid weak results from technology companies, concerns over artificial intelligence spending and rising geopolitical tensions. Jeff Anderson, head of U.S. operations at STS Digital, said Bitcoin "remains closely tied to technology stocks," adding that concerns about AI valuations and debt were weighing on the market. The report cited at least $440 million in liquidations of leveraged crypto positions over 24 hours, including $397 million in long positions. The liquidations came as prices fell, highlighting the broadening risk reduction beyond fund flows alone.
Despite the daily reversal, cumulative net inflows to Bitcoin exchange-traded funds have exceeded $57 billion since their launch in January 2024, while their assets under management have topped $100 billion, according to The Block's tracker. These figures provide context for the scale of the sector that saw the latest wave of outflows, without changing the characterization of the recorded daily flows. In the U.S. economy, the S&P Global Composite PMI Output Index fell to 57.6 points in October from 58.4 in September. Even so, the index remained at a level indicating the second-fastest expansion in activity since March 2022, the company said. S&P Global estimated that survey data pointed to annualized output growth of 5.0%.
S&P Global said the overall increase in prices for goods and services in October was the largest since August 2022. Companies attributed higher costs to oil-related inputs, energy, fuel and shipping, as well as raw materials, tariffs or supply shortages. On monetary policy, the Federal Open Market Committee was scheduled to meet on October 27 and 28, with the Federal Reserve chair due to hold a news conference on October 28. The release of U.S. personal income and spending data for September was also scheduled for October 29. The latest published reading of the Personal Consumption Expenditures Price Index showed an annual increase of 3.4% in August. These dates put activity and price data, along with monetary policy decisions, among the markets' key upcoming milestones after the wave of volatility.