Bitcoin ETF Outflows Surge $326 Million on BTC Price Recovery, Institutions Selling?

Bhushan Akolkar
3 hours ago
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Will Bitcoin ETFs Bounce Back In March After $3.5 Bln Outflows In February?

Highlights

  • Spot Bitcoin ETF outflows surge as institutions opt for profit booking after BTC price bounce back.
  • BlackRock CEO Larry Fink reiterated cautious support for Bitcoin, amid recent frenzy.
  • BTC price can see further drop to $110,000 before recovering for its next leg of rally.

Although the Bitcoin price surged to $115,000 levels following last Friday’s crypto market crash, outflows from the spot Bitcoin ETFs surged to $326 million. This seems that institutions have been selling on the BTC price rally. On the other hand, BlackRock CEO Larry Fink has urged caution over retail BTC investments, sparking a wave of skepticism in the market.

Bitcoin ETF Outflows Shoot to $326 Million

On Monday, October 13, the net outflows from the spot Bitcoin ETFs surged to a massive $326 million, marking the biggest outflows after the crypto market crash on October 10. Almost all of the spot ETFs in the US saw net outflows except for the BlackRock iShares Bitcoin Trust (IBIT).

Bitcoin ETF flows flip to negative
Source: Trader T

BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), recorded net inflows of 522 BTC, worth $60.3 million, according to data from Farside Investors. The fund’s daily trading volume reached $4.7 billion, underscoring continued strong institutional activity around Bitcoin.

So far, October has been a strong month for BTC ETFs, netting more than $5 billion in inflows during the first week itself. However, crypto market volatility has swept in once again with Trump announcing 100% tariffs on China just before last weekend. As a result, the inflows have slowed down, eventually ending up in the negative territory.

BTC Price Rally Sees Profit-Booking

Amid the current BTC price volatility, investors are opting for profit-booking as Bitcoin attempts a rally to $120,000. As of now, BTC is trading 1.6% down to $112,636 levels with daily trading volumes also dropping 23% to $71.47 billion. The Trump Insider whale has also increased its short position, leading to market skepticism.

Popular crypto analyst Altcoin Sherpan noted that with consistent selling, BTC price can find support at $110,000, before deciding on the next course of trajectory.

In addition to Bitcoin, the pullback is visible across the broader crypto market. On-chain data shows that crypto whales have been shorting XRP, DOGE, and PEPE recently.

BlackRock CEO Urges Caution on BTC Frenzy

BlackRock CEO Larry Fink has once again expressed cautious support for cryptocurrency investments. In an interview with CBS on Sunday, Fink acknowledged his past remarks from October 2017, when he had described Bitcoin as an “index of money laundering.” He clarified, “I did say Bitcoin, because we were talking about Bitcoin then, was the domain of money launderers and thieves.”

“But you know, the markets teach you, you have to always relook at your assumptions. There is a role for crypto in the same way there is a role for gold, that is, it’s an alternative,” added Fink.

Despite this, Fink also urged for caution from retail investors “For those looking to diversify, it is not a bad asset, but I don’t believe that it should be a large component of your portfolio,” he added.

The largest global asset manager has already tasted pretty good success with its Bitcoin ETF IBIT. Ever since the launch in January 2024, its assets under management have soared to $94 billion.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.