U.S. spot Bitcoin exchange-traded funds experienced significant capital withdrawals during the week of November 10 to 14. The funds recorded net outflows totaling $1.11 billion, marking the third straight week of negative flows for the investment vehicles.
Data from SoSoValue reveals that institutional appetite for Bitcoin exposure through ETFs has cooled considerably. The sustained outflows represent a notable shift in market sentiment following months of strong inflows into these products.
BlackRock and Grayscale Lead Outflow Wave
BlackRock's IBIT fund witnessed the largest single-week outflow among all spot Bitcoin ETFs. The fund saw $532.41 million exit during the reporting period. Despite this substantial withdrawal, IBIT maintains a cumulative net inflow of $63.79 billion since its inception.
Grayscale Bitcoin Mini Trust recorded the second-largest outflow for the week. The fund registered nearly $290 million in net withdrawals by November 14. The fund's historical net inflow stands at $63.79 billion as of the latest reporting date.
Grayscale Bitcoin Mini Trust(BTC), Source: SoSoValue
Current figures show the combined net asset value of all spot Bitcoin ETFs stands at $125.34 billion. These investment products now represent 6.67% of Bitcoin's total market capitalization, indicating their substantial presence in the broader cryptocurrency ecosystem.
Industry Experts Weigh In on Market Dynamics
Simon Gerovich, CEO of Japanese Bitcoin treasury firm Metaplanet, offered a perspective on the distinction between ETFs and treasury companies. He emphasized that ETFs provide static exposure to Bitcoin rather than active accumulation strategies.
"A BTC ETF provides fixed exposure to Bitcoin," Gerovich explained through social media. He noted that ETF holdings remain constant unless new capital flows into the funds. This contrasts with corporate treasury strategies that actively accumulate Bitcoin regardless of market conditions.
Przemysław Kral, CEO of European cryptocurrency exchange zondacrypto, addressed the immediate market implications. He highlighted concerns about the liquidity conditions in cryptocurrency markets over the weekend.
"We must beware of weekend liquidity, which is always thinner with fewer active traders letting each forced sale move the market more," Kral stated. He suggested that long-term investors might view the current environment as an accumulation opportunity. Short-term traders, however, face difficulties in predicting recovery timing.
The substantial ETF outflows have coincided with downward pressure on Bitcoin's price. Bitcoin traded near $95,647 at the time of reporting, reflecting a 0.32% decline over 24 hours. The price level represents a six-month low for the leading cryptocurrency.
BTC price action in the last 24 hours, Source: CoinMarketCap
Cryptocurrency markets experienced widespread liquidations totaling $617.45 million within a 24-hour period. Bitcoin accounted for $243.56 million of these forced position closures. Ethereum followed with $169.06 million in liquidations during the same timeframe.
