U.S. Bitcoin ETFs Log $635.6M Outflows Amid AI Stock Sell-Off

U.S. spot Bitcoin ETFs recorded combined net outflows of $635.6 million on Oct. 22, marking the largest daily withdrawal since June. The exodus from digital assets coincided with a broad retreat from risk assets as market volatility intensified.

BlackRock's iShares Bitcoin Trust led the selling, posting net outflows of $254.1 million. Other spot Bitcoin funds also saw heavy selling as crypto prices dropped between 3% and 5%. This decline in digital asset values occurred alongside a significant drop in the technology-heavy Nasdaq Composite index, which fell nearly 700 points, or 2.60%, on the same day.

Investors shifted capital away from the artificial intelligence trade, driven by growing concerns that a bubble is forming in A.I. stocks. Money moved into defensive areas of the market, specifically blue-chip stocks and government bonds. This rotation impacted digital assets broadly, with Bitcoin down 5% for the month of October.

Despite the sharp outflows on Oct. 22, Bitcoin ETF flows remain positive for the past week at $442.7 million, following a surge of inflows earlier in the period. Since U.S. regulatory approval in January 2024, spot Bitcoin ETFs have attracted more than $57 billion in combined net inflows. According to market data, about a dozen U.S. spot Bitcoin ETFs currently manage more than $100 billion in assets.

Bitcoin is trading at $81,800 on Oct. 23.