Bitcoin ETFs See Third Largest Outflow Since Inception

SUMMARY

S. spot ETFs had over $400 million in outflows, the third largest since their launch.
Previous outflows of this size marked local price bottoms on May 1 and Nov. 4.

According to Farside data, Bitcoin (BTC) exchange-traded funds (ETFs) listed in the United States experienced their third-largest outflow since their debut on Thursday, with $400.7 million withdrawn. During the same trading day, Bitcoin’s price fluctuated between $86,600 and $92,000. Since reaching an all-time high of more than $93,000 on November 13, the cryptocurrency has declined by nearly 6%. Such pullbacks frequently follow record highs, as investors typically take profits after substantial price increases. Glassnode data shows that over the last three days, investors have cashed out $15 billion in total.

The surge in Bitcoin’s price, which exceeded 25% since Donald Trump’s election as U.S. president earlier in the month, has corresponded with varied ETF fund flows. For example, BlackRock’s IBIT ETF continued its positive trend, posting inflows of $126.5 million since November 7. Conversely, other ETFs saw significant outflows: Fidelity’s FBTC lost $179.2 million, Bitwise BITB had outflows of $113.9 million, Ark’s ARKB ETF saw $161.7 million withdrawn, and Grayscale products combined for $74.9 million in outflows.

In terms of outflow volume, Thursday was the third-worst day for ETFs linked to Bitcoin. Remarkably, withdrawals of more than $400 million only happened twice, on May 1 and November 4. Prior to the U.S. presidential election, on November 4, the outflow totaled $541.1 million, and the price of Bitcoin fell to about $67,000 before rising to $93,000. In a similar vein, the outflow on May 1st, which coincided with a local bottom close to $60,000, was $563.7 million. Market investors are keeping a close eye on whether this tendency will reoccur, as these historical trends suggest that large outflows may indicate price bottoms.

In contrast, ether (ETH) ETFs registered their first outflow in nearly two weeks, with investors pulling out $3.2 million. While BTC’s ETF activity attracts more attention, this minor ETH outflow adds to the broader narrative of profit-taking and fund reallocation across the cryptocurrency sector. The current market dynamics are driven by a mix of profit realization, anticipation of future price movements, and investor sentiment shaped by recent political and economic events.