US spot Bitcoin exchange-traded funds experienced significant capital flight on Thursday, recording $635 million in net outflows. This single-day withdrawal marked the largest daily loss since June 25, when ETFs shed $696 million, and effectively reversed the momentum gained earlier in the week. The outflows exceeded Wednesday’s $528 million in inflows, pushing October’s cumulative flows back into negative territory with a net total of $175 million in withdrawals for the month.
The sharp decline snapped a three-day streak of positive activity that had previously attracted $1.08 billion in new capital. Despite Thursday’s heavy losses, the sector maintained weekly net inflows of $443 million, following two consecutive weeks of prior outflows. Market data from SoSoValue highlights this volatility as investors adjusted positions amid shifting price dynamics.
Bitcoin’s price action reflected the broader market sentiment, trading between $80,996 and $82,551 on Thursday. This range represented a decrease from Wednesday’s intraday high of $84,777. At the time of publication, BTC was valued at approximately $81,783, down roughly 1% over the preceding 24 hours according to CoinGecko. Altcoin ETFs also faced mixed results, with Ether funds seeing about $111 million in outflows, while Solana and Hyperliquid ETFs recorded losses of roughly $9 million and $8 million, respectively. XRP ETFs were an exception, attracting approximately $3.6 million in inflows.
The magnitude of Thursday's outflows signals a rapid shift in institutional sentiment, erasing the short-term recovery seen earlier in the week. By pushing October's net flows back into the red, the $635 million withdrawal underscores the fragility of recent inflow streaks and suggests that current market conditions are prompting profit-taking or risk reduction among ETF holders. The contrast between the weekly net positive and the monthly net negative highlights a volatile environment where short-term gains are quickly offset by larger, concentrated sell-offs.
From a market structure perspective, the divergence between Bitcoin and altcoin ETF performance indicates selective liquidity management rather than a uniform exit from crypto assets. While major funds like Bitcoin and Ether saw substantial outflows, the modest inflows into XRP ETFs suggest that some investors are rotating capital within the sector rather than leaving it entirely. This behavior points to ongoing uncertainty regarding asset-specific catalysts and regulatory clarity, which continues to drive fragmented investment decisions across different digital asset classes.
