US spot Bitcoin and Ether exchange-traded funds have recorded a combined $986.3 million in net outflows so far this October, with withdrawals accelerating over two consecutive trading sessions as Bitcoin fell below $81,000 during Thursday’s sell-off.
Data from Farside Investors shows US spot Bitcoin ETFs lost $244.1 million on Thursday, following $484.9 million in net redemptions on Wednesday. The Wednesday figure marked the largest single-day Bitcoin ETF outflow since June 25, placing the week among the sharper reversals in institutional fund demand since the products began trading.
Spot Ether ETFs also remained under pressure. The funds posted $72.5 million in net outflows on Thursday, extending their withdrawal streak to eight trading days. Since that run began on September 29, Ether products have shed approximately $641.3 million, according to Farside data.
Bitcoin ETF outflows have reached $407.4 million for October, while Ether ETFs have lost $578.9 million. Ether funds therefore account for the larger share of the month’s withdrawals despite Bitcoin remaining the larger ETF market by assets and trading activity.
Bitcoin retreat coincides with heavier ETF withdrawals
Bitcoin’s price weakness provided the immediate backdrop for Thursday’s fund redemptions. CoinGecko data showed Bitcoin falling to an intraday low of $80,427 before recovering to around $82,506 at the time of reporting.
The decline followed a period in which Bitcoin had tested higher levels and renewed discussion of a sustained breakout. That momentum has now been challenged by a combination of reduced ETF demand and a rapid unwinding of leveraged positions across the digital-asset market.
ETF flows do not track every movement in the spot market on a one-to-one basis. Fund shares can be bought and sold by traders independently during the day, while the reported net-flow figures reflect creations and redemptions completed through authorized participants. Yet sustained outflows can reduce a source of recurring spot-market demand because redemptions generally require ETF issuers to sell or transfer underlying assets.
The two-day Bitcoin ETF withdrawal total of $729 million is especially relevant after months in which the funds had become a major channel for US-based institutions, wealth managers and brokerage clients seeking Bitcoin exposure without directly holding the asset. A sharp swing from creations to redemptions can amplify market caution even when it does not establish a lasting change in allocation strategies.
Ether funds extend an eight-day run of redemptions
Ether’s ETF flow picture is more prolonged. Thursday’s $72.5 million outflow was smaller than Bitcoin’s daily figure, but it continued an eight-session sequence without a net inflow.
The cumulative $641.3 million withdrawn from spot Ether ETFs since September 29 exceeds the $578.9 million recorded for October alone because the streak began before the month started. The figures indicate that Ether fund demand weakened before Thursday’s broader market decline and has yet to find a clear reversal.
Ether ETFs have often shown more variable flows than Bitcoin products, partly because Ether’s investment case involves additional factors beyond price exposure. Market participants assess the Ethereum network’s activity, transaction economics, competition from other smart-contract networks and the role of staking, which is not necessarily available through every ETF structure.
That makes the current redemption streak a useful gauge of short-term positioning, though it does not by itself establish a conclusion about longer-term demand for Ethereum. The immediate effect is more practical: fewer net ETF purchases remove a potential stabilizing source of buying during a volatile period.
Leverage magnifies the market decline
The fund withdrawals arrived alongside a broader deleveraging event. More than $1.1 billion in leveraged cryptocurrency positions were forcibly closed during the market move, according to figures cited in the supplied market data. Roughly $1.04 billion of those liquidations came from long positions, or trades positioned for higher prices.
Liquidations occur when traders using borrowed funds no longer hold enough collateral to support their positions. Once prices cross a platform’s margin threshold, positions can be closed automatically. A cascade of closures can deepen a decline because forced sellers add to immediate market supply.
The concentration of liquidated long positions suggests the sell-off was intensified by crowded bullish positioning rather than being driven solely by unleveraged holders selling spot assets. That distinction matters for interpreting the decline: a market can fall sharply when leveraged bets are unwound even if long-term holders are not broadly exiting.
It also leaves the market sensitive to further moves around technical support levels. If prices stabilize, the removal of leverage can reduce the risk of another immediate liquidation cascade. If support breaks again, remaining leveraged positions may face renewed pressure.
Spot activity will be closely watched
Glassnode said confirmation of Bitcoin’s recent breakout would require a pickup in spot trading volume alongside renewed ETF buying. The blockchain analytics firm did not frame that observation as a price forecast; it pointed to the type of demand needed to support a move higher after a volatile pullback.
That places attention on whether spot-market purchases begin to outpace derivatives-driven activity. A recovery led mainly by futures positioning can be vulnerable to another sharp reversal, particularly after a liquidation-heavy sell-off. Stronger participation in spot markets and a return to net ETF creations would offer more evidence that buyers are absorbing available supply.
For now, the October figures show a meaningful retreat in demand through the largest US regulated crypto fund vehicles. Bitcoin’s funds have seen two unusually large daily redemptions, while Ether products remain caught in their longest recent sequence of outflows. The next ETF flow reports will show whether the selling was concentrated around the price drop or marks a more persistent reduction in exposure.
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