Bitcoin ETFs lose $635 million as BTC nears estimated $81,500 acquisition cost

US spot Bitcoin ETFs recorded approximately $635 million in net withdrawals on Thursday, Oct. 22, as Bitcoin approached the funds' estimated average acquisition cost. SoSoValue data show the withdrawals were the largest since June 25 and reversed nearly 60% of inflows from the preceding three trading sessions. BlackRock's iShares Bitcoin Trust (IBIT) recorded withdrawals of $254 million. Fidelity's FBTC recorded withdrawals of $217 million. The two funds represented approximately 74.2% of net withdrawals that day.

ARK Invest's ARKB lost $109 million. Grayscale's GBTC recorded withdrawals of $30 million. Bitwise's BITB lost $27 million. Morgan Stanley's MSBT attracted approximately $2 million, making MSBT the only fund with net inflows. Bitcoin fell as low as $80,841 during the reporting period as worsening Middle East tensions and renewed worries about US technology stocks unsettled markets.

The withdrawals interrupted an apparent recovery in institutional demand after two successive weeks of ETF outflows. Bitcoin funds received $527 million on Oct. 19. The funds attracted $23 million on Oct. 20. The funds received $528 million on Oct. 21. Thursday's withdrawals left net inflows for the week at approximately $443 million.

XS.com business development head Simon-Peter Massabni attributed unstable flows to cautious investors pursuing short-term trades rather than longer-term commitments. Massabni said Bitcoin retained tentative support above $80,000, although buying strength remained inadequate for a lasting recovery. Glassnode's Oct. 21 market report, using data through Oct. 19, estimated the average acquisition price of US spot Bitcoin ETF holdings at approximately $81,500. Glassnode estimated that corporate Bitcoin treasuries acquired their holdings at an average price of $80,200. Glassnode found that buy orders near $80,000 had recovered by Oct. 20 after substantial depletion during the Oct. 15 selloff, but remained smaller than before.

Corporate treasury purchases have stayed below one-tenth of the November 2024 monthly peak since June, weakening another potential source of demand during declines. Glassnode identified the True Market Mean around $77,600 as the next major downside reference if Bitcoin closes below $80,000. However, holders' acquisition costs and sell orders concentrated between $85,000 and $87,500 could restrict a recovery.

Escalating Middle East hostilities increased fears of disrupted energy supplies, pushing Brent crude above $110 a barrel and threatening stronger global inflation pressures. Massabni argued that persistently high energy prices could require central banks to maintain restrictive monetary policy, limiting liquidity for speculative investments. The Nasdaq Composite declined 2.6% on Thursday, partly reflecting concerns about returns from substantial artificial intelligence infrastructure spending. The S&P 500 fell 1.21% on Thursday, also partly reflecting those concerns. The Federal Reserve will make the next policy decision on Oct. 28.

US-listed Ethereum ETFs recorded approximately $111 million in net withdrawals on Oct. 22. SoSoValue data show BlackRock's ETHA lost $75 million. BlackRock's staking-focused ETHB recorded withdrawals of $17 million. Grayscale's two Ethereum funds together lost $20 million. Fidelity's FETH received approximately $2 million, the only positive flow among funds reporting activity.

Ethereum ETF withdrawals reached approximately $1.18 billion in October. September's inflows had totaled $832 million, less than October's withdrawals. Year-to-date net inflows fell to approximately $387 million. Ethereum ETFs lost a combined $129 million on Oct. 19 and 20. The funds attracted $15 million on Oct. 21. However, BlackRock's ETHA continued recording withdrawals during that brief recovery. Massabni said Ethereum would need several successive sessions of sustained buying for a price recovery as Ethereum struggled to establish firm support near $2,400.