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

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).

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.