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Bitcoin Updates: As Investors Pull Out of Bitcoin ETFs, Altcoins See Increased Inflows During November Sell-Off

Bitcoin Updates: As Investors Pull Out of Bitcoin ETFs, Altcoins See Increased Inflows During November Sell-Off

Bitget-RWA2025/11/24 09:54
By:Bitget-RWA

- U.S. bitcoin ETFs lost $1.22B in net outflows for the week ending Nov 21, extending a four-week negative streak with total November redemptions reaching $3.79B. - Bitcoin fell below $82,000 amid a 7-month low, triggering a $350B crypto market cap drop as Citi noted 3.4% price declines per $1B ETF outflow. - Solana and XRP ETFs bucked the trend with $300M and $410M inflows, attracting institutional interest despite broader market weakness. - Analysts warn of potential 50% further Bitcoin declines, while F

Bitcoin ETFs See $1.22 Billion Pulled in Fourth Straight Week of Outflows During Market Downturn

U.S. spot

exchange-traded funds (ETFs) experienced net outflows totaling $1.22 billion for the week ending November 21, marking the fourth week in a row of withdrawals, . This pushed the month's total outflows to $4.34 billion, with BlackRock's IBIT—the largest bitcoin ETF—responsible for $1.09 billion of the weekly redemptions . These outflows occurred alongside a significant drop in the overall crypto market, as , hitting its lowest price in seven months.

This November selloff marked the poorest monthly showing for U.S. bitcoin ETFs since their launch in January 2024. Redemptions for the month hit $3.79 billion,

of $3.56 billion set in February. BlackRock's led the pack, with $2.47 billion withdrawn in November—making up 63% of the total—as investor confidence faded and the earlier rally from digital asset treasuries lost steam . "The excitement from earlier this year has completely dissipated," said LVRG Research's Nick Ruck, to a more cautious institutional approach.

The selloff accelerated as

, with the asset trading at $87,348 as of November 24, down 1.2% over the previous 24 hours. The cryptocurrency was headed for its weakest month since the 2022 market crash, by more than $350 billion following the ETF outflows. Citi Research observed that for every $1 billion pulled from bitcoin ETFs, the price typically drops by 3.4%, .

While bitcoin ETFs faced challenges, newly introduced

(SOL-USD) and (XRP-USD) ETFs moved in the opposite direction, and $410 million in net inflows, respectively. These funds have attracted institutional capital despite the broader market downturn, and XRP funds gaining $179.6 million in the week ending November 21. Analysts believe investors are shifting toward altcoins with higher perceived growth prospects, .

The ETF-driven selloff also affected corporate Bitcoin reserves.

, which had surged earlier in the year, dropped 82% in October and saw only slight growth in November, suggesting reduced institutional accumulation. Meanwhile, totaling $630 million in the past 24 hours, with long positions making up 65% of the losses.

Despite the ongoing outflows, some in the market anticipate a possible recovery. On November 21,

—the first positive session in almost a month—driven by Fidelity's FBTC and Grayscale's Bitcoin Mini Trust. , still accounted for 69% of all ETF trading activity, highlighting its leading position in the sector.

The outlook for Bitcoin's recovery is still unclear.

the price will consolidate between $85,000 and $90,000, while Alliance DAO's QwQiao cautioned that a further 50% drop is possible. , now at 69%, provide some hope for risk assets, but ongoing macroeconomic uncertainty and limited liquidity continue to dampen sentiment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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