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Bitcoin ETFs Shed $635M as BTC Slides Toward $81,500 Average Cost Basis
US spot Bitcoin ETFs logged roughly $635 million in net outflows on Thursday, Oct. 22, as Bitcoin drifted toward the funds' estimated average acquisition cost. SoSoValue data show the redemptions were the heaviest since June 25 and erased nearly 60% of the inflows booked over the preceding three sessions.
BlackRock's iShares Bitcoin Trust (IBIT) saw $254 million leave, and Fidelity's FBTC lost $217 million. Together the two funds accounted for about 74.2% of the day's net outflows. ARK Invest's ARKB shed $109 million, Grayscale's GBTC $30 million and Bitwise's BITB $27 million. Morgan Stanley's MSBT drew about $2 million, the only fund to post net inflows.
Bitcoin traded as low as $80,841 during the period as worsening Middle East tensions and fresh doubts over US technology stocks unsettled markets.
The withdrawals interrupted an apparent recovery in institutional demand after two straight weeks of ETF outflows. The funds pulled in $527 million on Oct. 19, $23 million on Oct. 20 and $528 million on Oct. 21. After Thursday's redemptions, weekly net inflows stood at approximately $443 million.
SimonPeter Massabni, head of business development at XS.com, blamed the unstable flows on cautious investors favoring short-term trades over longer-term commitments. He said Bitcoin retained tentative support above $80,000, though buying strength remained too weak for a lasting rebound.
Glassnode's Oct. 21 market report, drawing on data through Oct. 19, put the average acquisition price of US spot Bitcoin ETF holdings at roughly $81,500 and estimated corporate Bitcoin treasuries bought in at an average $80,200. Buy orders near $80,000 had recovered by Oct. 20 after heavy depletion during the Oct. 15 selloff, but stayed smaller than before, Glassnode found. Corporate treasury purchases have remained below one-tenth of the November 2024 monthly peak since June, weakening another source of demand during declines.
Glassnode identified the True Market Mean near $77,600 as the next major downside reference should Bitcoin close below $80,000. Holders' cost bases and sell orders clustered between $85,000 and $87,500 could still restrain a recovery.
Escalating Middle East hostilities stoked fears of disrupted energy supplies, pushing Brent crude above $110 a barrel and raising the risk of stronger global inflation. Massabni argued that persistently high energy prices could force central banks to keep policy restrictive, sapping liquidity for speculative assets. The Nasdaq Composite fell 2.6% on Thursday and the S&P 500 lost 1.21%, partly on concerns about returns from substantial artificial intelligence infrastructure spending. The Federal Reserve issues its next policy decision on Oct. 28.
US-listed Ethereum ETFs recorded about $111 million in net outflows on Oct. 22. SoSoValue data show BlackRock's ETHA lost $75 million and its staking-focused ETHB $17 million, while Grayscale's two Ethereum funds shed $20 million combined. Fidelity's FETH took in roughly $2 million, the only positive flow among funds reporting activity. Ethereum ETF outflows have reached approximately $1.18 billion in October, well above September's $832 million of inflows. Year-to-date net inflows have fallen to about $387 million. The funds lost a combined $129 million on Oct. 19 and 20 and drew $15 million on Oct. 21, a brief recovery during which BlackRock's ETHA continued bleeding. Massabni said Ethereum would need several consecutive sessions of sustained buying to engineer a price recovery, as it struggles to establish firm support near $2,400.