What happened?
Big outflows hit both Ethereum and Bitcoin spot ETFs in mid‑October, with Ethereum ETFs seeing about $145.68 million pulled in one day (their third straight day of outflows) and Bitcoin ETFs another $40.47 million (their fourth straight day). Major funds like BlackRock’s ETFs led large withdrawals, erasing part of the early‑October inflow gains. Even though cumulative ETF inflows remain sizable year‑to‑date, the recent redemptions have cooled the “Uptober” rally momentum.
Who does this affect?
Institutional investors and big ETH treasury holders are directly impacted as they trim positions and slow accumulation. Retail traders and short‑term speculators feel the price pressure and increased volatility from those redemptions and on‑chain movements. ETF issuers and fund managers also face flow volatility and shifting investor sentiment that can affect product demand and performance.
Why does this matter?
These outflows matter because they can sap liquidity and sentiment, making it harder for the market to sustain the usual October gains and increasing the chance BTC tests $100,000 and ETH tests roughly $3,800. If ETF withdrawals continue, it could trigger more selling, push prices lower, and delay any broad institutional return to crypto. Macro risks like the U.S. shutdown, trade tensions, and potential Fed rate moves make the market more sensitive, so ETF flows now have bigger ripple effects on prices and risk appetite.