Bitcoin ETF Outflows Hit $326M — Fink Warns Retail Investors

Andrew Chen
Bitcoin (BTC)

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  • Bitcoin ETF outflows hit $326M, signaling institutional profit-taking.
  • BlackRock’s IBIT was the only ETF to record inflows.
  • Larry Fink warned retail investors to keep Bitcoin exposure limited.

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Bitcoin’s recent climb above $115,000 has triggered a wave of institutional selling, with spot Bitcoin ETFs recording $326 million in net outflows on October 13 — the largest since last week’s market crash. Data shows nearly every U.S. Bitcoin ETF saw redemptions except BlackRock’s iShares Bitcoin Trust (IBIT), which stood out with $60.3 million in inflows and $4.7 billion in daily trading volume.

Bitcoin ETF flows flip to negative
Source: Trader T

This shift suggests that while Bitcoin’s price action has revived optimism, institutional players are locking in profits rather than adding new exposure. October began with over $5 billion in ETF inflows, but volatility — amplified by Trump’s proposed 100% tariffs on China — has cooled momentum sharply.

Bitcoin Rally Faces Resistance

Bitcoin’s rally toward $120,000 has met heavy selling pressure. As of Tuesday, BTC traded 1.6% lower at $112,636, with trading volumes down 23% to $71.47 billion. Analysts like Altcoin Sherpa suggest BTC could test $110,000 support before the next decisive move.

Meanwhile, broader crypto markets are mirroring this weakness. On-chain data shows whales shorting XRP, DOGE, and PEPE, signaling fading risk appetite among large holders.

Larry Fink Warns Retail Investors

Adding to the cautious sentiment, BlackRock CEO Larry Fink urged restraint from retail investors during a CBS interview on Sunday. While acknowledging crypto’s role as an “alternative asset like gold,” Fink cautioned that Bitcoin “should not be a large component of your portfolio.”

Also Read: Coinbase and Amex Launch Bitcoin Card With Up to 4% Cashback

Despite his tempered tone, Fink’s firm continues to dominate ETF inflows. Since launching in January 2024, IBIT’s assets under management have surged to $94 billion, underscoring Wall Street’s growing footprint in the crypto ecosystem.

A Cooling Moment for Hot Money

The recent ETF outflows highlight a market at a crossroads — where institutional traders are cashing out and retail enthusiasm is being tested by cautionary voices. Bitcoin’s next move may depend on whether buyers can hold the $110,000 line or if another correction unfolds before year-end.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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