Spot Bitcoin ETFs Face $536M Outflows: Largest Since August Amid Risk Aversion

Record Outflows Signal Investor Caution

U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a staggering $536.4 million in net outflows on October 16, 2025—the largest single-day negative flow since August 1—reflecting heightened investor risk aversion amid macroeconomic headwinds. Data from SoSoValue shows eight of the 12 Bitcoin ETFs bleeding funds, with Ark 21Shares’ ARKB leading at $275.15 million, followed by Fidelity’s FBTC at $132 million. BlackRock’s IBIT, Grayscale’s GBTC, Bitwise, VanEck, and Valkyrie also posted losses, contributing to Bitcoin’s price slipping below $110,000 to around $108,420, down 2.4% in 24 hours. Spot Ethereum ETFs mirrored the trend, with $56.9 million in outflows, reversing prior gains and underscoring sector-wide deleveraging.

Macro Pressures and Liquidation Aftermath

Analyst Nick Ruck of LVRG Research attributes the exodus to a “sharp surge in investor risk aversion,” driven by evolving U.S. tariff policies and a broader market deleveraging event. This follows last Friday’s historic $20 billion liquidation cascade, triggered by President Trump’s 100% tariffs on Chinese imports, which wiped out 1.5 million traders and amplified U.S.-China tensions. Since then, Bitcoin ETFs have seen consistent outflows interspersed with minor inflows, with cumulative net outflows reaching $332.3 million over five days. X sentiment echoes this unease, with users like @TheMoonShow noting a “red day” for both BTC and ETH ETFs, while @KeyNewsEN warns of intensified short-term selling pressure.

ETF Performance Breakdown

Among the hardest hit, ARKB’s massive redemption highlights profit-taking after Bitcoin’s recent highs, while FBTC’s $132 million drain underscores institutional repositioning. In contrast, some funds like Invesco’s BTCO saw smaller outflows of $11.1 million, but overall, the 11 Bitcoin ETFs collectively lost ground as risk assets falter. Ethereum’s reversal, with BlackRock’s ETHA bucking the trend earlier but overall net negative, suggests correlated caution across altcoins.

Outlook: Support Levels and Recovery Signals

Bitcoin now tests key support at $108,000, with analysts like Arthur Hayes warning of a potential dip to $100,000 if breached, though long-term holder demand and ETF floors could stabilize prices. Derivatives data shows 40% volume spikes but flat open interest, indicating growing caution rather than panic. X discussions, including from @CryptoNews_eth, frame this as liquidity reallocation amid Fed expectations, not fundamental erosion. As tariffs loom, markets eye rebounds toward $113,000-$115,000 if support holds, but sustained outflows could prolong consolidation.