Investors pulled a large amount of cash out of United States crypto funds during the second week of
October 2026. Spot Bitcoin and Ethereum exchange-traded funds, known as ETFs, saw 1.22 billion
dollars leave between October 5 and October 9.
This sudden exit marked a sharp turn for the digital coin market. Just one week before, the two fund
groups had gained about 103 million dollars. But shifting money trends and higher bond yields led large
funds to take profits. Many big funds chose to step back from risky assets.
Official numbers from research group Farside Investors showed that Bitcoin funds lost 678.9 million
dollars over the week. At the same time, Ethereum funds lost 542.2 million dollars during the same five
days.
The biggest exits happened in the middle of the week. On October 7 alone, Bitcoin and Ethereum ETFs
lost 645.8 million dollars in one day. Another 316.6 million dollars left on October 8. By Friday, October
9, the selling slowed down. Bitcoin funds even saw 21.1 million dollars come back in.
Different funds saw different amounts of selling. Among Bitcoin funds, the Fidelity Wise Origin Bitcoin
Fund, called FBTC, saw the largest exits. Investors pulled about 380.3 million dollars from it. The ARK
21Shares Bitcoin ETF, known as ARKB, lost 207.2 million dollars.
In contrast, the BlackRock iShares Bitcoin Trust, known as IBIT, held strong. It brought in a small net gain
of 1.1 million dollars for the full week. It was helped by 122 million dollars on October 6 and 22.4 million
dollars on October 9.
While Bitcoin funds lost more total dollars, Ethereum funds took a bigger hit based on their size. The
542.2 million dollars pulled from Ethereum funds equaled about 3.7 percent of their total net cash of
14.48 billion dollars. For Bitcoin funds, the 678.9 million dollars lost was only 0.7 percent of their 100.6
billion dollar pot.
Most of the Ethereum exits came from one fund. The iShares Ethereum Trust, called ETHA, lost 477.1
million dollars. That was about 88 percent of all money pulled from Ethereum funds that week. October
9 was the ninth day in a row that Ethereum funds lost money.
Market experts pointed to big money trends behind the fund exits. The main reason was a jump in
United States Treasury bond yields. The 10-year Treasury yield rose to about 5.26 percent by October 9.

When government bonds pay more interest, safe government debt looks better to big investors. Safe
debt feels less scary than volatile crypto tokens.
At the same time, the United States Federal Reserve has kept interest rates high. The central bank lifted
its main rate by 25 basis points in September. It set a range of 3.75 percent to 4.00 percent. Central bank
notes show that leaders still worry about inflation.
Experts say fund exits do not mean big firms are leaving crypto for good. ETF flows show daily share
moves made by market makers. Many big funds simply balance their asset piles on set schedules. They
often move money around when bond yields rise.
Now, investors are watching new economic reports closely. Key dates include the October 14 inflation
report. Another key date is the Federal Reserve meeting on October 27 and 28. Those events will give
clear hints about future interest rates and fund demand. Market watchers want to see if funds will start
buying again once interest rate news becomes clear. In the meantime, fund managers remain cautious
as bond markets adjust to higher rates. Large institutions continue to watch each new data point with
care.