Spot bitcoin (BTC) exchange-traded funds (ETFs) recorded million-dollar losses yesterday, October 16, on Wall Street, marking a day of strong pressure for the digital currency.
net capital outflow reached $536 million, a level not seen since August, without any fund reporting inflows.
The ARK 21Shares Bitcoin ETF (ARKB) led the outflows with $275 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $132 million.
These outflows directly impacted the market, as spot ETFs operate by buying and holding bitcoin to support their actions. When investors withdraw capital, managers often sell part of their holdings to cover redemptions, increasing the supply of bitcoin.
Without an equivalent demand, This dynamic generated downward pressure that led the price of the currency to fall below $105,000. on the current day.
For its part, the correlation of BTC with traditional stock markets was evident. The weakness on Wall Street, triggered by problems in two regional banks in the United States, Zions Bancorp and Western Alliance Bancorp, affected the digital asset, as reported by CriptoNoticias.
Both banks reported difficulties with loans linked to alleged fraud, which generated uncertainty in the markets and dragged down bitcoinreflecting its sensitivity to movements in stock indices.