Amid rising geopolitical tensions in the Middle East, Bitcoin spot Exchange-Traded Funds (ETFs) in the United States have experienced significant outflows.
According to data from Farside Investors, Bitcoin spot ETFs saw an outflow of $242.6 million (equivalent to Rp2.7 trillion) during Monday’s trading session on October 1, 2024, marking the largest outflow since early September.
Among the affected products, the Fidelity Wise Origin Bitcoin Fund (FBTC) suffered the biggest outflow, totaling $144.7 million, followed by Ark 21Shares Bitcoin ETF (ARKB), which saw $84.3 million in outflows.
Other Bitcoin ETFs that recorded smaller outflows include Bitwise Bitcoin ETF (BITB), VanEck Bitcoin ETF (HODL), and Grayscale Bitcoin Trust (GBTC). Conversely, BlackRock iShares Bitcoin Trust (IBIT) was the only product to record significant inflows, amounting to $40.8 million.
In addition to Bitcoin ETFs, Fidelity’s Ether spot ETF, the Fidelity Ethereum Fund (FETH), also saw similar outflows, with a total of $25 million withdrawn over the same period. This marks the largest outflow since the fund’s launch in July 2024.
Crypto Market Turmoil Amid Iran-Israel Conflict
The cryptocurrency market, particularly Bitcoin, has experienced high volatility since the beginning of October, with Bitcoin’s value dropping from around $65,000 to $60,000. This decline has impacted not just Bitcoin but also other cryptocurrencies, which have followed similar trends. At the time of writing, Bitcoin is trading at $61,100.
The downturn in the crypto market is largely attributed to escalating tensions in the Middle East, leading investors to become more cautious with risky assets. The conflict intensified after Iran launched ballistic missile strikes on Israel in retaliation for the killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
This situation mirrors earlier events in April and July of this year, when news of Middle Eastern conflicts triggered negative reactions in the crypto markets.
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