US Bitcoin ETFs Hit by $485 Million in Outflows, Marking Largest Daily Drop Since June

US spot Bitcoin exchange-traded funds experienced their largest single-day net outflows since June, with investors pulling $484.9 million on Wednesday. This massive withdrawal reversed the previous day's net inflows of $118.8 million and erased all gains made during the first four trading sessions of October. The heavy selling left Bitcoin exchange-traded funds with approximately $163 million in net outflows for the month.

The outflow was led by BlackRock's iShares Bitcoin Trust (IBIT), which saw investors withdraw $207.7 million, a sharp turn from the $122 million in net inflows it recorded on Tuesday. Fidelity's FBTC (FBTC) and ARK 21Shares' ARKB (ARKB) also faced substantial redemptions, losing $105.1 million and $101.7 million respectively. Meanwhile, Bitcoin's price slipped around 2% over a 24-hour period, trading near $82,700 on Thursday.

Investors should also watch the broader cryptocurrency fund market, as US spot Ether exchange-traded funds are suffering a prolonged downturn. Ether funds recorded $160.9 million in net outflows on Wednesday, marking their seventh consecutive day of losses. Since late September, these Ether funds have shed roughly $569 million, led on Wednesday by BlackRock's iShares Ethereum Trust (ETHA) with $116.1 million in withdrawals and Grayscale's Ethereum Trust (ETHE) with $25.8 million.