U.S. Bitcoin spot ETFs saw a combined $903 million in net outflows on November 20, marking the second-largest withdrawal day since their debut in January 2024, according to market data.
Ethereum spot ETFs extended their own losing streak with $262 million in net outflows, recording an eighth consecutive day of redemptions, data from SoSoValue showed.
Blackrock’s iBit fund takes the biggest hit
BlackRock’s iShares Bitcoin Trust (IBIT) posted the largest outflows on the day, followed closely by Grayscale’s Bitcoin fund, which also saw significant redemptions.
The withdrawals came amid a sharp 24-hour decline in Bitcoin, driven by institutional profit-taking, miner revenue pressures, and technical factors contributing to accelerated selling, analysts said.
Institutions shift to risk-off positioning
Crypto exchange Luno noted in its market update that ETF redemptions reflect rising “risk-off positioning,” with major investors locking in profits ahead of year-end.
“Institutional investors are leading the charge, with ETF outflows signalling profit-taking and risk-off positioning,” said Rachael Lucas, crypto analyst at BTC Markets.
Analysts say long-term investors may see opportunity
Przemysław Kral, CEO of European exchange zondacrypto, said long-term investors could benefit from accumulating assets at lower valuations, while short-term traders may struggle to time a rebound.
“Significant outflows from Bitcoin ETFs indicate that institutional players are taking profits off the table,” Kral said.
He added that while further declines in Bitcoin’s price are possible, large holders continue to accumulate.
“This is a sign of underlying strength and confidence in the project, even though the price is falling,” he said. “For some, this could be a chance to enter the market at a lower price. Still, risks remain high, volatility is elevated, and the macro environment can shift quickly.”
