According to data from SoSoValue, over $4.34 billion has been withdrawn from Bitcoin-linked ETFs since October 31st. BlackRock’s largest crypto fund, IBIT, experienced a net outflow of $2.34 billion over the month. On November 18th, the fund saw its largest single-day withdrawal since its launch, amounting to $523 million.
Nick Ruck, Director at consulting firm LVRG Research, attributed this to major investors seeking to book profits after Bitcoin reached a new all-time high surpassing $126,000. The LVRG Director emphasized that year-end portfolio rebalancing could be taking place, which does not necessarily signify a loss of confidence in Bitcoin-based products.
Nevertheless, a three-day inflow into Bitcoin ETFs was recorded just before the U.S. Thanksgiving holiday. On November 28th, the total capital flowing into American exchange-traded funds tracking the premier cryptocurrency reached $57.71 billion. Analysts also noted that open interest in Bitcoin futures continues its upward trend.
Spot Ethereum ETFs similarly registered a net monthly outflow, amounting to $1.42 billion. This marks the largest figure on record, despite observing capital inflows during the last five days of the month.
Meanwhile, investors are channeling capital into the recently launched exchange-traded funds tied to SOL and XRP cryptocurrencies. The cumulative inflow into the XRP ETF since its inception stands at $666 million. Last month, the Litecoin and Hedera ETFs launched by Canary Capital attracted $7 million and $36 million, respectively.
Ruck observed that the new spot altcoin ETFs attracted modest inflows given the market’s elevated volatility. This suggests that institutional investors remain primarily focused on funds tracking Bitcoin and Ethereum until cryptocurrency regulation becomes clearer.
About the Author
