Bitcoin ETFs Hit Hard: Worst Month for ETFs!
On Thursday, U.S.-listed Bitcoin exchange-traded funds experienced yet another significant decline. A tiny glimmer of relief earlier in the week was erased by this. With a $75.4 million influx on Wednesday, funds ended a five-day outflow skid. But on Thursday, they experienced a fresh outflow of $903 million.
This number is the biggest outflow day in November, according to Farside Investors. Since the product’s January 2024 inception, it has also been one of the largest single-day outflows. November is on course to become the worst month ever for US spot Bitcoin ETF withdrawals because of the $3.79 billion withdrawal. If the remaining days fail to offset this month’s redemptions, the record will likely be cemented. The amount has already eclipsed the record for the biggest monthly withdrawal since the introduction of ETFs, which was $3.56 billion in February.
November Becomes Heaviest Month for US Spot Bitcoin ETF Outflows
The primary cause of the extraordinary November withdrawals is the iShares Bitcoin Trust (IBIT) ETF offered by investment behemoth BlackRock. This month, the product has experienced $2.47 billion in net redemptions. About 63% of the $3.79 billion taken out of all US spot Bitcoin ETFs is accounted for by this. With $1.02 billion in outflows this week, the fund likewise led the pack. The CEO and founder of analytics platform CryptoQuant, Ki Young Ju, emphasized that this week’s performance was IBIT’s biggest weekly outflow yet. In terms of the fund’s outflow history, this is an important turning point.
In November, Fidelity’s Wise Origin Bitcoin Fund (FBTC) was the second biggest source of outflows. There were $1.09 billion in monthly withdrawals from the fund. The issuer has already seen withdrawals totaling $225.9 million this week. This is an example of moderate yet enduring redemptions. Both funds contributed to the overall liquidity drain, even if FBTC’s withdrawals were still less than IBIT’s. Due to this outflow, November now has more withdrawals from Bitcoin ETFs than February ever did. In November, they collectively accounted for 91% of all US spot Bitcoin ETF withdrawals.
Crypto Analyst Flags Harsh Bear Market Amid Bitcoin’s Sharp Drop
Following the roughly $1 billion in ETF withdrawals, CoinGecko reports that the Bitcoin price dropped to $83,461 on Friday. The decline caused Bitcoin to reach its lowest point in seven months—a price range last observed in April. Industry experts claim that the recession might just be the beginning. In September, QwQiao, a co-founder of Alliance DAO, reposted his caution. He contended that the upcoming bear market might be more severe than anticipated.
There’s a large cohort of dumb money who know nothing about crypto buying DATs and ETFs. This never ends well,
QwQiao
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