Bitcoin ETFs see net outflows of $903 million as prices plummet while Blackrock and Grayscale see large outflows.
Summary
- US Bitcoin ETFs saw net outflows of $903 million on November 20, the second highest since early 2024, trailing Ethereum ETFs after eight straight days of losses.
- BlackRock and Grayscale posted the biggest pullbacks as institutional investors took profits before year-end, citing a shift in risk.
- Experts say volatility remains high, with big investors buying the dip while short-term traders face challenging recoveries.
US Bitcoin spot exchange-traded funds recorded a net outflow of $903 million on November 20, which is the second largest outflow since the funds were founded in January 2024, according to market data.
Ethereum spot ETFs recorded net outflows of $262 million, extending a streak of eight consecutive days of net outflows, according to facts from SoSoValue.
BlackRock iShares Bitcoin Trust is suffering a major exodus
BlackRock’s iShares Bitcoin Trust experienced the largest outflows on Nov. 20, followed by the Grayscale fund, which also recorded significant net outflows on Thursday, data showed.
The outflow occurred as Bitcoin fell sharply over a 24-hour period amid institutional exits, pressure on the mining economy and technical market triggers, market observers said.
https://sosovalue.com/assets/etf/us-btc-spot
Crypto exchange Luno stated in its market insights that ETF outflows indicate ‘risk-off positioning’, with large investors securing their profits before the end of the year.
“Institutional investors are leading the way, with ETF outflows indicating profit taking and risk taking,” Rachael Lucas, crypto analyst at BTC Markets, told crypto media.
Przemysław Kral, CEO of European crypto exchange Zondacrypto, told news media that long-term investors have the opportunity to accumulate tokens at lower prices, while short-term traders may face challenges in timing a market recovery.
“Significant outflows from Bitcoin (BTC) ETFs indicate that institutional players are taking profits off the table,” Kral said.
Kral noted the potential for further Bitcoin price declines, but added that large Bitcoin holders continue to buy the cryptocurrency. “This is a sign of underlying strength and confidence in the project, even as the price falls,” Kral said. “For some, this could be an opportunity to enter the market at a lower price than we have seen recently. Therefore, it is important to recognize the risks. Volatility is high and the macro environment can change quickly.”
