Bitcoin ETF outflows reach record highs amid rising tensions in the Middle East

Bitcoin ETF outflows reach record highs amid rising tensions in the Middle East

There have been significant changes in the bitcoin market in recent days. The recent increase in tensions in the Middle East has sparked fear among institutional investors, leading to the largest outflow from US bitcoin-focused ETFs (exchange traded funds) in over a month. According to data from Farside Investors, there were nearly $243 million in outflows on Oct. 1, which those invested in these funds felt was a worrying trend.

The bitcoin outflow broke an eight-day period of inflows that brought in a total of $1.4 billion during that time. Earlier, on Sept. 3, $288 million left bitcoin ETFs, indicating that the current market situation was considerably unhappy for investors.

The biggest loss was recorded by the Fidelity Wise Origin Bitcoin Fund, which saw an exit of $144.7 million. In second place was the ARK 21Shares Bitcoin ETF with a loss of $84.3 million. Other funds, such as Bitwise Bitcoin ETF and VanEck Bitcoin ETF, also posted outflows, with Bitwise losing $32.7 million and VanEck losing $15.8 million.

In contrast, the BlackRock iShares Bitcoin Trust was on a positive streak, attracting $40.8 million in one day. This marked the 15th day of continuous inflows for the fund, indicating its stable position despite the overall trend of outflows.

The price of bitcoin plunged by nearly $4,000 on October 1 due to the Iranian missile attack on Israel, leading to a drop to a two-week low of $60,315. At the time of writing, however, bitcoin has begun to recover and its price has climbed to $61,620.

Not only did bitcoin ETFs experience outflows, but nine U.S. ether-focused spot ETFs also saw losses, with a total outflow of $48.6 million. Grayscale Ethereum Trust led the outflows with a $26.6 million outflow, followed by Fidelity Ethereum Trust, which lost approximately $25 million.

In summary, the current geopolitical situation and its effect on the markets shows how quickly investor sentiment can turn and how sensitive they are to external factors.

*This is not investment advice.

Coingarage team