$635.6 Million Exits U.S. Bitcoin Funds on October 22
Key Facts
U.S. spot Bitcoin funds recorded net outflows of $635.6 million on October 22, followed by a reported outflow of $137.9 million on October 23, according to data from Farside Investors. This came after inflows of $526.7 million on October 19, $23.2 million on October 20 and $524.8 million on October 21. The funds thus moved from 3 consecutive sessions of net inflows to 2 days of outflows. Farside’s page shows an incomplete figure for the HODL fund on October 23, with a dash in the fund’s field for that day. InvestingLive estimated that net outflows from U.S. funds totaled about $313.5 million from the start of October through October 25.
The reversal in flows coincided with a roughly 3.45% decline in Bitcoin over the two outflow days, according to InvestingLive. The cryptocurrency briefly fell below $80,000 over the weekend of October 24 and 25, before recovering to about $80,600. EL7 data recorded a close of $81,189.43 on October 23, followed by $80,888.16 on October 24 and $80,154.09 on October 25. On October 26, the close rose to $80,346.01. Coinbase Institutional placed the $80–82 thousand range in a short-term support area, citing an overlap between the ETF holders’ average cost basis near $81.3 thousand and the 50-day moving average near $81.7 thousand.
Coinbase Institutional said the institutional demand picture had changed over the year: in the first half, companies holding Bitcoin bought nearly $14.5 billion, while U.S. spot Bitcoin funds were net sellers of about $5 billion. The trend has reversed since August, with funds receiving about $6.4 billion, compared with $1.5 billion in corporate purchases. The comparison shows that funds have been an important source of demand recently, but daily flows have remained volatile. Coinbase noted that companies added only 267 Bitcoin in the week before its report and spent $193 million on repurchasing their STRC preferred shares. The company is scheduled to report third-quarter results on October 29.
Coinbase Institutional said ETF share purchases drive the funds to buy Bitcoin to back the shares, while sales may lead to the cryptocurrency being sold. But it stressed that flows do not reveal buyers’ identities or motives, and that “one strong day of inflows does not mean a sustained trend.” In its market assessment, Coinbase linked the nearby support area to the convergence of funds’ holders’ breakeven cost and the 50-day moving average. It added that a failure of the $80–82 thousand range could make $73–75 thousand the next support area, according to its estimate published on October 23. These levels remain part of Coinbase’s reading of price action, as investment funds recorded outflows at the end of the week.
On economic factors, Coinbase Institutional said U.S. producer prices rose 1.3% month over month in September, the biggest increase since March 2022, with energy accounting for more than 80% of the rise. It also said futures were pricing in a roughly 80% probability of an interest rate hike in December 2026, and said such a hike would make it harder to own a non-yielding asset like Bitcoin. The Federal Reserve will hold a Federal Open Market Committee meeting on October 27 and 28, followed by a news conference, according to the central bank’s schedule. The meeting is being watched after volatile fund flows and a decline in the cryptocurrency’s price during the two outflow days. The company holding Bitcoin is scheduled to report third-quarter results on October 29.