Key points:
- Bitcoin ETF recorded a net outflow of $635.6 million, reversing the previous day's net inflow of $524.8 million.
- Ethereum ETF faced a redemption of $110.8 million
- The prices of Bitcoin and Ethereum decline in tandem with the outflow of ETF funds.
US spot Bitcoin and Ethereum exchange-traded funds (ETF) recorded a total net outflow of $746.4 million on October 22. According to (Farside Investors) data, Bitcoin (ETF) had a net outflow of $635.6 million, while Ethereum (ETF) saw an additional outflow of $110.8 million.
Bitcoin ETF saw a net outflow of $635.6 million
GBTC of Grayscale also saw outflows of $29.5 million, however, Morgan Stanley's MSBT recorded a small net inflow of $2.3 million.
The outflow of $635.6 million represents the largest single-day net outflow for Bitcoin ETF since October 14th. At that time, investors withdrew $261.4 million from these funds.
Ethereum ETF continues to lose momentum
Ethereum ETF is also facing selling pressure, with ETHA of BlackRock leading the decline, resulting in a net outflow of $75.5 million. ETHB of BlackRock also recorded a net outflow of $17.2 million, while ETHE and ETH funds had outflows of $9.6 million and $10.7 million respectively.
Fidelity's FETH is one of the few funds that attracted new capital, recording a net inflow of $2.4 million.
Bitcoin and Ethereum prices decline
ETF Capital outflows coincided with the sell-off in the cryptocurrency market on October 22. Yesterday, Bitcoin fell by about 3.4% to $81,278; it retreated after failing to maintain a rebound above $84,000.
Ethereum also fell, dropping by about 3.7%, and was trading around $2,394.03 at the time of this report.
The prices of cryptocurrencies and the ETF capital flows are both declining, indicating that investors' interest in digital assets is waning. However, the outflow of ETF funds does not necessarily prove to be the cause of the price drops.
Investors will now be watching whether institutional demand will rebound after a significant outflow on Thursday, or whether the continuous selling pressure will push Bitcoin and Ethereum to even lower support levels before the weekend.
