Fidelity’s bitcoin ETF loses $197 million as crypto funds face eight-day exodus
Ether ETF outflows have now persisted for eight consecutive trading days, totaling $641 million, while spot bitcoin funds suffered their heaviest two-day exodus in months, a pullback that reflects broader market headwinds including rising Treasury yields and dollar strength. For institutions tracking institutional-grade crypto adoption, the scale of fund redemptions and the flight from both major assets signals a potential reset in demand after months of ETF inflows.
- Fidelity’s FBTC lost $197.09 million Thursday, accounting for 81% of that day’s $244.13 million bitcoin ETF outflow
- Ether ETFs declined for the eighth straight session, totaling $641 million in cumulative outflows since September 29
- Bitcoin and ether funds combined lost $964.5 million over Wednesday and Thursday, the largest two-day exodus in recent months
- $731.2M Bitcoin fund outflows across Wednesday and Thursday combined
- 8 days Consecutive daily ether ETF outflows since September 29
- $110.68B Total bitcoin fund assets on Tuesday, down to $104.91B by Thursday
Spot bitcoin and ether ETFs faced steep redemptions over two days (Wednesday and Thursday, October 8-9), with bitcoin funds losing $731.2 million and ether funds shedding $72.54 million on Thursday alone. Wednesday saw the sharpest single-day bitcoin outflow since June 25, when funds lost $487.07 million, according to calculations from Cryptopolitan using SoSoValue data. The withdrawals came as bitcoin fell 2.9% over the prior week to around $82,390, and ether dropped 7.4% in seven days to approximately $2,485. Total net assets in bitcoin funds fell from $110.68 billion on Tuesday to $104.91 billion by Thursday’s close.
Fidelity’s FBTC leads bitcoin fund exodus, despite remaining net positive since launch
Fidelity’s spot bitcoin fund FBTC bore the brunt of Thursday’s outflows, losing $197.09 million and representing 81% of the day’s total bitcoin ETF redemptions. Despite the single-day loss, FBTC remains well-capitalized at $14.55 billion in net assets and has accumulated $10.52 billion in cumulative net inflows since its January 2024 launch.
BlackRock’s IBIT, the largest spot bitcoin ETF by assets, lost $5.54 million Thursday but had bled $207.7 million the previous day, leading the Wednesday exodus. Ark and 21Shares’ ARKB, Bitwise’s BITB, and Grayscale’s GBTC also posted losses; only Franklin’s EZBC attracted inflows, pulling in $4.71 million on Thursday.
The two-day pullback is significant but does not yet reverse the overall narrative of institutional accumulation.
Bitcoin funds have traded $3.18 billion across the two sessions and maintain $57.09 billion in cumulative net inflows since January 2024.
Ether ETF redemptions extend to eighth consecutive day after $641 million exit
Ether spot ETFs have now sustained outflows for eight straight trading days, totaling approximately $641 million since September 29. Thursday’s ether outflow of $72.54 million was led by BlackRock’s ETHA, which lost $71.12 million, while Grayscale’s ETHE shed $6.12 million and 21Shares’ TETH and VanEck’s ETHV also saw redemptions.
Only Fidelity’s FETH and Morgan Stanley’s MSSE posted inflows, drawing $5.50 million and $1.32 million respectively. Ether ETF assets total $15.64 billion, representing 5.17% of ether’s total market capitalization.
The eight-day streak represents a marked reversal from the initial enthusiasm surrounding ether ETF launches in July 2024. Wednesday alone accounted for $160.77 million of the cumulative outflow, and Tuesday saw $201.89 million leave ether funds. At the outset of the streak in late September, the exodus had reached approximately $408 million over six sessions.
Market headwinds, rising yields, dollar strength, and new regulation, weigh on crypto demand
The synchronized pullback in both bitcoin and ether fund flows coincides with rising Treasury yields, strengthening dollar, and climbing oil prices, factors that typically draw capital away from risk assets and alternative investments.
ETF trading volume across bitcoin and ether funds reached $3.18 billion and $1.92 billion respectively, reflecting active repositioning rather than complete disengagement.
A new regulatory framework for bitcoin and ether ETF listings in Bangkok takes effect October 16, potentially opening a new offshore channel for institutional flows.
The CCS read. We see these outflows not as a rout but as a pause in institutional adoption, FBTC’s $10.52 billion net gain and bitcoin funds’ $57.09 billion cumulative inflow since launch remain substantial. The question is whether the next leg of demand comes from existing holders taking profits or from fresh institutional capital waiting for steadier macro conditions.
Watch whether bitcoin and ether fund outflows continue next week or stabilize. The arrival of Thailand’s new ETF regulatory framework on October 16 will be the first concrete catalyst to test whether redemption pressure eases or whether institutional demand has genuinely softened on macro headwinds.
