Crypto ETFs shed $391 million while inflation fears grip markets
Combined Bitcoin and Ethereum spot ETFs recorded $391 million in net outflows on October 14 as inflation fears grew before the Federal Reserve meeting.
Combined Bitcoin and Ethereum spot exchange-traded funds recorded $391 million in net outflows on October 14, according to data from SoSoValue and CoinGape published October 15. The single-session exit marked a sharp withdrawal by institutional investors.
The drop followed $151.5 million in combined outflows across Bitcoin, Ethereum, and Solana funds on October 12, according to the sources. Ethereum products led that session's decline, accounting for over $85.4 million in net exits.
Recent Consumer Price Index inflation data served as the primary catalyst for the selloff, according to SoSoValue and CoinGape. Rising inflation figures elevated market expectations of tighter monetary policy from central banks.
Markets currently price in a 51.3 percent probability of an interest rate hike at the Federal Reserve meeting on October 28, according to the report. Higher borrowing costs typically diminish institutional appetite for risk assets like cryptocurrency ETFs.
Following the outflows, Bitcoin traded at $80,915 while testing critical psychological support at $80,000, according to market data. Ethereum traded at $2,360 as developers prepare for the Hoodi testnet launch on October 27.
Analysts monitor upcoming October 15 ETF flow data, scheduled for release on October 16 by SoSoValue, to determine whether withdrawals form a trend. A third consecutive session of negative flows would confirm a broader pause in institutional demand.
What do these terms mean?
Exchange-Traded Funds (ETFs): Investment funds traded on stock exchanges that track the price performance of underlying assets such as stocks, commodities, or cryptocurrencies.
Net Outflows: The financial condition occurring when the total volume of capital withdrawn from a fund exceeds total new investment capital over a specific timeframe.
Consumer Price Index (CPI): A key economic indicator that measures price changes over time for a representative basket of goods and services to track inflation.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
