So much for “Uptober.” Historically a strong month for Bitcoin’s price, October has instead started this year with a flood of capital leaving Bitcoin exchange-traded funds (ETFs).
Across three days straight of losses so far in October, investors have cashed out a total of $361.2 million from such products, data from London investment firm Farside Investors shows.
The outflows come after a week of solid inflows: Investors last week plugged over $1 billion into the funds.
October—dubbed “Uptober” by some traders—is a month generally known for having high crypto prices in the past following what has historically been a chilly September for Bitcoin and other top assets. However, Bitcoin ultimately had a strong September this year after a rough initial start to the month.
Bitcoin’s price briefly dropped below $60,000 on Thursday; now it stands at about $62,200, up more than 3% on the day.
Bitcoin ETFs—approved for trading in the U.S. in January—led to the rise of the biggest and oldest asset this year.
In March, the coin touched a new all-time high of $73,737 as investors previously unwilling to handle crypto assets threw cash at Bitcoin via the new regulated investment vehicles trading on stock exchanges.
Wall Street titans such as BlackRock, Fidelity, and VanEck all have Bitcoin funds available to investors via brokerage accounts.
But the fast-flowing cash has stalled in recent months. The reason? Geopolitical tensions aren’t helping, analysts told Decrypt this week. During times of political instability, investors tend to eye-up “safe haven” assets like gold or treasuries.
We’re only in the first week of “Uptober,” though. Will investor sentiment change?
Edited by Andrew Hayward