Bitcoin Spot ETFs Face Largest Single-Day Outflow Amid Escalating Middle East Tensions

On October 2, COINOTAG reported via Cointelegraph that escalating Middle East tensions led to the most substantial single-day net outflow for Bitcoin spot ETFs in over a month. This shift disrupted a steady eight-day inflow amounting to $1.4 billion. The rising geopolitical instability appears to have rattled institutional investors, prompting significant movements in the market. The U.S. Bitcoin spot ETF saw a drastic outflow of nearly $243 million, with Fidelity’s FBTC experiencing the highest withdrawal of $144.7 million. It was closely followed by ARKB, which reported a net outflow of $84.3 million, Bitwise Bitcoin ETF with $32.7 million, VanEck Bitcoin ETF with $15.8 million, and Grayscale Bitcoin Trust, which saw $5.9 million withdrawn. BlackRock’s IBIT stood out with a positive influx, enjoying $40.8 million in net inflows, its 15th consecutive day of positive capital movement. Bitcoin’s value tumbled by nearly $4,000, reaching a two-week low of $60,315, as the crypto market reacted to Iran’s missile strike on Israel on October 1. These developments have heightened concerns among institutional players.