Bitcoin ETFs Record $326 Million in Outflows Even As Price Rises to $115K After Market Crash

Bitcoin ETFs saw $326 million in outflows even as the Bitcoin price jumped to $115,000 after the market crash.

Most US spot Bitcoin ETFs faced withdrawals, but BlackRock IBIT gained $60 million in new investor inflows.

Ethereum whales bought heavily as ETH recovered to $4,300 while ETF funds recorded large outflows.

Bitcoin surged to $115,000 after Friday’s market crash, yet spot Bitcoin ETFs recorded $326 million in outflows by Monday. The withdrawals marked the highest daily outflows since the October 10 crash. Nearly all U.S. spot Bitcoin ETFs saw net redemptions.

Only BlackRock’s iShares Bitcoin Trust (IBIT) recorded inflows, adding 522 BTC worth $60.3 million. Despite the selling, IBIT's daily trading volume reached $4.7 billion, indicating strong institutional involvement

BlackRock’s IBIT recently became its top-earning ETF, nearing $100B AUM in just 435 days, showing strong demand for Bitcoin exposure. The contrast between price movement and ETF flows suggests profit-taking among large investors.

October began with over $5 billion in ETF inflows. Things, however, stalled with geopolitical tensions. There was renewed volatility following the proposal of new tariffs on China by the U.S. market.

Retail Sentiment Wavers as Market Turns Cautious

The sentiment of investors changed drastically following the spike in price. Retail confidence is draining out of ETFs. The current unrest in the BTC market saw a lot of money being cashed in by those who received profits after the coin reached out to reach a value of $120,000.

Bitcoin lost 1.6% to $112,636 upon resuming trading on the weekend, and the trading volumes declined 23% to $71.47 billion. Analysts believe that Bitcoin may get its support at around $110,000 before establishing a new direction.

Large players appear to be increasing short positions. This includes the trader known as Trump Insider, whose actions amplified market doubt. Institutional caution is further reflected in ETF data, with widespread redemptions across major funds.

Broader Crypto Market Faces Pullback

The crypto market, not only Bitcoin, is also under pressure. Whales have been shorting the popular altcoins on-chain, including XRP, DOGE, and PEPE. Last month, Bitcoin ETFs saw $902 million in outflows as investors reacted to Fed uncertainty and new US trade tariffs.

Ethereum experienced a brief dip toward $3,500 after leverage-driven liquidations. However, whales resumed accumulation shortly after the crash. BitMine Immersion Technologies added 202,037 ETH over the weekend, worth $827 million.

Its total holdings now exceed 3.03 million ETH, nearly 2.5% of the circulating supply. Other large wallets also made significant ETH purchases following the pullback. OTC desks facilitated bulk buys worth tens of millions.

Ethereum ETFs Post Outflows While Derivatives Stabilize

Despite the ETH rally to $4,300, U.S. spot Ether ETFs reported outflows. BlackRock’s ETHA saw $80 million in redemptions, while Fidelity’s FETH lost $30 million.

On-chain data indicates institutions might be buying directly from the market instead of ETFs. Funding rates across derivatives exchanges dropped to their lowest since 2022.

This is an indication of low leverage and a less optimistic attitude. According to analysts, Ethereum is also in a mid-cycle accumulation stage. The global trends of money supply, as indicated by historical patterns, support ETH.

Ethereum is still over the $4,000 mark, which is backed by the growth in purchases made by major investors. Market structure is an indicator of the continued recovery even when there is uncertainty in the short term.