Bitcoin ETFs Lose Nearly $1 Billion in Two Weeks as October Stays Red

Investors pulled $910 million out of Bitcoin ETFs over two weeks as hot inflation data revived fears of higher interest rates.

Money is flowing out of Bitcoin investment funds, and fast. Over the past two weeks, investors yanked nearly $1 billion out of U.S. Bitcoin ETFs, turning what fans hoped would be a strong October into a disappointing month.

First, let's explain the basics. A spot Bitcoin ETF (exchange-traded fund) is a product that holds real Bitcoin but trades on the stock market like a normal share. It lets people invest in Bitcoin through a regular brokerage account without having to buy or store the cryptocurrency themselves.

When more money leaves these funds than enters, it's called an outflow — a sign that investors are nervous and heading for the exits.

Here are the key numbers:

$228.6 million left the funds this week
$681.1 million left the week before
Combined, about $910 million exited in two weeks
October is now down roughly $615 million overall
Since launching in January 2024, the funds have still attracted $57.3 billion in total

Why are people selling? The main culprit is inflation (the rate at which prices rise). September's data showed prices up 3.7% from a year earlier — higher than the 3.6% experts expected. Hot inflation makes investors fear the Federal Reserve (America's central bank) will raise interest rates.

Here's why that matters: when rates rise, safe investments like U.S. government bonds can pay around 5% with almost no risk. That makes risky bets like Bitcoin far less attractive.

The pressure showed up in prices. Bitcoin briefly dropped below $80,000 on Thursday, and nearly $950 million in borrowed (leveraged) trading positions were wiped out — about 90% of them bets that prices would go up.

The bottom line: Bitcoin ended the week near $81,590, and ETF investors remain cautious. While the long-term picture still shows strong overall interest, the short-term mood is clearly fearful as everyone waits to see what the Fed does next.

This is an AI-generated summary. Read the original article at: https://decrypt.co/381246/bitcoin-etfs-shed-nearly-1-billion-two-weeks-uptober-red