BlackRock and Fidelity Lead $635M Bitcoin ETF Outflow

A Sudden Turn of Tides for Institutional BitcoinBTC+0.05% Funds

Have you ever watched the tide roll in and then suddenly pull back out twice as fast? That is exactly what played out in the institutional crypto market this week. Big money investors took a sudden step back on Thursday, pulling hundreds of millions of dollars out of spot crypto funds in a single trading session.

U.S.-listed Bitcoin Exchange-Traded Funds (ETFs) experienced a staggering $635.49 million in net outflows on Thursday, October 23, 2026. This abrupt exit ended an upbeat three-day winning streak that had previously poured over $1 billion into the market.

This single-day withdrawal represents the largest net loss for Bitcoin ETFs since June 25. In fact, Thursday's selling wiped out nearly 60% of the $1.08 billion that institutions accumulated over the preceding three sessions.

BlackRock and Fidelity Lead the Outflow Rush

The majority of Thursday's heavy selling came from the market's two largest funds. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) accounted for approximately 74% of all withdrawals for the day.

Here is a breakdown of how the individual Bitcoin funds performed on Thursday:

• BlackRock (IBIT): Lost $254.05 million in net outflows.
• Fidelity (FBTC): Lost $217.46 million in net outflows.
• Ark / 21Shares (ARKB): Saw $109.43 million leave the fund.
• Grayscale Bitcoin Trust (GBTC): Posted $29.53 million in exits.
• Bitwise (BITB): Recorded $27.35 million in net withdrawals.
• Morgan Stanley (MSBT): Bucked the trend as the lone positive fund, adding $2.33 million in inflows.

Trading activity remained heavy despite the selling pressure. Across all spot Bitcoin ETFs, total daily trading volume reached $2.56 billion. However, overall net assets held by these funds dropped by nearly $5 billion in a single day, finishing at $104.71 billion.

Price Volatility Triggers Rapid Reversals

To understand why institutional investors shifted so quickly, it helps to look at recent price movements. On Wednesday, Bitcoin rallied close to the $85,000 mark. But on Thursday, the asset experienced a sharp pull back, sliding below $81,000 before settling around $81,707.

This price drop triggered immediate reactions from fund managers and automated trading strategies. On Wednesday, BlackRock's IBIT and Fidelity's FBTC together brought in $447.70 million. Just 24 hours later, the two funds combined lost $471.51 million. Looking at those two days combined, their net flow turned slightly negative.

This rapid swing shows that while institutional appetite for crypto remains active, conviction can be sensitive to short-term price fluctuations. When prices pull back quickly, large funds often trim their holdings to manage risk, though short-term market volatility remains high.

Disclaimer: Past performance of digital assets is not a guarantee of future results. Historical returns or past performance do not guarantee future performance or returns. You can view real-time market data on regulated exchanges like Bitkub Market.

Despite Thursday's steep decline, Bitcoin ETFs remain in positive territory for the week overall, holding a net weekly gain of $442.67 million. However, month-to-date flows have slipped back into negative territory, showing a deficit of $174.50 million for October.

Ether Funds Mirror the Sharp Pullback

Bitcoin was not the only major digital asset experiencing institutional exits on Thursday. Spot Ether ETFs followed a nearly identical pattern, reversing from Wednesday's $14.96 million inflow into a substantial $110.50 million net withdrawal on Thursday.

Here is how the main Ether funds fared during Thursday's trading session:

• BlackRock Ether Trust (ETHA): Shed $75.45 million.
• BlackRock EthereumETH+0.22% Depositary Shares (ETHB): Lost $17.17 million.
• Grayscale Ether Mini Trust: Recorded $10.69 million in outflows.
• Grayscale Ethereum Trust (ETHE): Saw $9.56 million leave the product.
• Fidelity Ethereum Fund (FETH): Stood out as the sole positive fund, gathering $2.37 million in inflows.

Trading volume for Ether funds totaled $550.23 million on Thursday, bringing cumulative net assets down to $14.57 billion. This quick reversal highlights the ongoing hesitation among institutional investors toward Ether in October, where brief buying rallies have struggled to sustain long-term momentum.

Altcoin ETFs Show Mixed Results

While Bitcoin and Ethereum funds faced a tough day, the broader crypto ETF market presented a mixed picture. Some altcoin-focused products managed to attract fresh capital despite the wider market downturn.

Zcash stood out as a clear bright spot for the second consecutive day:

• Zcash (Grayscale ZCSH): Inflow of $14.23 million, bringing its two-day total to roughly $29.4 million and net assets to $681.39 million.
• XRPXRP-0.88% (Franklin XRPZ): Added $3.55 million in net inflows.
• NEAR (Bitwise NRR): Recorded a modest gain of $513,060.

On the other hand, SolanaSOL-0.04% funds surrendered their recent momentum. After breaking a 12-session outflow streak on Wednesday, Solana ETFs shed $8.51 million on Thursday. Bitwise's BSOL lost $5.72 million, while Grayscale's GSOL saw $3.22 million in withdrawals. Meanwhile, HYPE ETFs recorded $7.88 million in net exits.

Regulatory Updates: OCC Finalizes GENIUS Act Rules

In parallel with fund flow activity, official regulatory frameworks continue to develop behind the scenes. The Office of the Comptroller of the Currency (OCC) has finalized new regulations implementing the GENIUS Act.

These new rules establish baseline federal standards for financial institutions handling stablecoins. Key regulatory areas covered by the finalized framework include:

1. Strict mandatory reserves backing circulating stablecoins.
2. Standardized redemption timelines and user guarantee rights.
3. Clear legal rules regarding institutional custody of digital assets.
4. Comprehensive risk management protocols for banking institutions involved with stablecoin issuers.

Key Takeaways for Crypto Investors

Thursday's market action highlights how dynamic institutional crypto investment has become. While large financial institutions bring billions in liquidity to digital asset markets, their capital flows can shift direction rapidly when broader market sentiment turns.

Understanding these capital movements helps everyday traders separate short-term market noise from broader market trends. Even with short-term swings in ETF activity, regulatory clarity and institutional participation continue to lay the structural foundation for digital asset adoption.