Bitcoin ETFs see largest outflow since June with $485 million exit

U.S. spot Bitcoin ETFs suffered a massive $485 million outflow on October 7, 2026, their largest single-day exit since June. Led by a $207.7 million withdrawal from BlackRock's IBIT, the exodus erased all early October inflows. The selloff coincided with Bitcoin dropping below $83,000, pushing prices under the estimated ETF investor cost basis of $84,318. Rising 30-year Treasury yields at 5.7% and $100 Brent crude fueled macro headwinds, driving $429 million in derivatives liquidations.

Overall Bitcoin ETF outflows

• ▪Bitcoin ETFs' October 7, 2026 outflows erased the $321.6 million in net inflows accumulated during the first four trading sessions of October 2026, leaving the month down over $163 million
• ▪United States spot Bitcoin exchange-traded funds recorded net outflows of approximately $485 million on October 7, 2026, marking their largest single-day withdrawal since June 25, 2026

Outflows from specific Bitcoin ETFs

• ▪Fidelity's FBTC and ARK 21Shares' ARKB followed BlackRock's iShares Bitcoin Trust (IBIT) outflows on October 7, 2026, losing $105.1 million and $101.7 million respectively
• ▪BlackRock's iShares Bitcoin Trust led the October 7, 2026 withdrawals with $207.7 million in net outflows, reversing its $122 million net inflow from the previous day

Slowing ETF demand

• ▪Bitcoin falling below Bitfinex analysts' estimated $84,318 flow-weighted average cost basis (aggregate breakeven) for Bitcoin exchange-traded fund investors on October 7, 2026, raised concerns that further price declines could trigger additional investor redemptions
• ▪Bitfinex analysts reported that average daily inflows into Bitcoin exchange-traded funds fell to approximately $35 million over five trading sessions ending October 6, 2026

Ethereum ETF withdrawals

• ▪BlackRock's iShares Ethereum Trust recorded $116.1 million in outflows on October 7, 2026, while Grayscale's Ethereum Trust lost $25.8 million
• ▪United States spot Ethereum exchange-traded funds' seven-day losing streak since September 29, 2026, reached approximately $569 million in cumulative withdrawals after a $160.9 million net outflow on October 7, 2026

Macroeconomic pressures on risk assets

• ▪The 30-year United States Treasury yield rose to approximately 5.7% on October 7, 2026, reaching its highest level since 2002
• ▪Rising United States Treasury yields, a stronger dollar, and Brent crude oil hovering near $100 a barrel on October 7, 2026, increased pressure on non-yielding risk assets like Bitcoin

Bitcoin price trends

• ▪Bitcoin fell below $83,000 on October 7, 2026, dropping as low as $81,125 on October 8, 2026, and erasing nearly half of its September gains
• ▪Bitcoin fluctuated between approximately $83,000 and $87,000 for more than two weeks after peaking at $87,354.33 on September 21, 2026

Derivatives market liquidations

• ▪Derivatives market liquidations reached approximately $429 million over a 24-hour period ending October 8, 2026, with long positions accounting for 87.5% of the total
• ▪Derivatives market liquidations reached approximately $969 million on October 7, 2026, more than double the volume recorded over the subsequent 24 hours

Debatable claims

• ▪Spot ETFs amplify volatility in the cryptocurrency market
• ▪Bitcoin is an ineffective hedge against macroeconomic instability
• ▪Federal Reserve policy is the main cause of the recent cryptocurrency selloff