Bitcoin ETFs Shed $635M as Crypto Market Pulls Back
U.S. spot Bitcoin ETFs posted $635.5 million in net withdrawals on Oct. 22, the largest daily outflow since June 25, following more than $1 billion of inflows earlier in the week. Bitcoin dropped to roughly $81,200 as $315 million in leveraged positions were liquidated, and traders are monitoring $82,000. Spot Ether ETFs also lost $110.5 million, including $75.45 million from BlackRock’s ETHA.
The Oct. 22 withdrawals followed more than $1 billion entering U.S. spot Bitcoin funds earlier that week, making the reversal notable. Ether funds also retreated, losing $110.5 million, with BlackRock’s ETHA responsible for $75.45 million, according to SoSoValue.
Broader markets weakened the same day: the S&P 500 slipped 1.2% and the Nasdaq fell 2.6%, its sharpest drop since June, as technology and AI shares led declines. Brent crude reached a five-month high, adding inflation worries. Glassnode said corporate Bitcoin holders, profitable at an average cost near $80,200, are buying very little.
The pullback could affect retail investors and savers exposed to crypto-linked funds, especially those using leverage, by amplifying losses during sudden liquidations. It may also influence corporate treasury strategies and the perceived reliability of Bitcoin ETFs as institutional vehicles. Broader market weakness and energy-driven inflation concerns could shape how households and businesses view risk, though direct societal effects are likely concentrated among crypto market participants and financial institutions rather than the general public.