Bitcoin ETFs Suffer $242.6 Million Outflow as Tensions Rise in Middle East, Marking End of Inflow Streak

Bitcoin exchange-traded funds (ETFs) in the U.S. faced a significant setback on Tuesday. They saw outflows of $242.6 million, the largest drop since September 3, according to SoSoValue.

This marked the end of an eight-day streak of inflows. Bitcoin (BTC) dropped as much as 6% amid rising tensions in the Middle East. Iran launched around 200 ballistic missiles at Israel. This attack came after Israel's recent actions against Hezbollah, a group recognized as a terrorist organization by over 60 jurisdictions, including the U.S., EU, and Arab League. Israeli Prime Minister Benjamin Netanyahu vowed to respond.

As a result, Bitcoin fell to a low of $60,300. This decline erased nearly all the gains it had made since the Federal Reserve cut interest rates last month. The situation casts a shadow over "Uptober," a term used in the community to describe October, a month known for significant Bitcoin gains. According to CoinDesk Indices, Bitcoin has lost 2.6% since the start of the month.

Ether ETFs also struggled on Tuesday, experiencing outflows of $48.5 million, marking their worst day since September 23.