Bitcoin ETFs Record Massive Outflows as Whales Exit Amid Market Uncertainty

Bitcoin exchange-traded funds (ETFs) faced their largest single-day outflow since August, signaling rising caution among institutional investors and major Bitcoin holders. According to SoSoValue data, U.S.-listed Bitcoin ETFs saw a staggering $558.4 million in net outflows, marking the biggest drawdown since August 1. This comes as Bitcoin struggles around the $102,000 level, reflecting waning market confidence despite steady prices.

Leading the exodus, Fidelity’s FBTC reported $256 million in outflows, while Ark Invest and 21Shares’ ARKB followed with $144 million, the fund’s largest outflow relative to its size. Even BlackRock’s IBIT ETF, typically more resilient, wasn’t spared—logging $131 million in withdrawals, its seventh outflow in eight trading sessions. Analysts suggest that macroeconomic uncertainty and profit-taking may be driving the pullback.

However, JPMorgan made a contrarian move by increasing its stake in BlackRock’s Bitcoin ETF by 64%, now holding 5.28 million shares worth $343 million as of September 30. The bank also maintains $68 million in call options and $133 million in put positions, showing a balanced yet opportunistic stance on Bitcoin’s volatility.

Adding to the market’s fragility, on-chain data indicates that long-term Bitcoin whales are offloading significant holdings. Capriole Investments co-founder Charles Edwards described the current environment as a “super whale exit phase,” with dormant wallets selling between $100 million and $500 million worth of BTC. Research firm K33 further revealed that “mega whales” have liquidated over $45 billion in the past month, hinting at widespread profit realization.

Despite the selloffs, optimism lingers. Michael Saylor’s bullish “Buy Now” call and James Chanos’ exit from bearish positions are fueling renewed confidence that Bitcoin could soon rebound from its current slump.