Bitcoin News Today: Bitcoin ETFs Bleed $8B as Solana ETFs Attract $70M in 5-Day Streak

The U.S. Bitcoin spot ETF market has entered a period of sustained outflows, with investors pulling $137 million on November 6, marking the sixth consecutive day of redemptions, according to Lookonchain data. The selloff has disproportionately impacted major players: BlackRock's BIT saw a $375.5 million net outflow, while Fidelity's FBTC and ARK's ARKB attracted smaller inflows of $113.3 million and $82.9 million, respectively, according to the same Lookonchain data. Over the past week, the cumulative outflow for U.S. Bitcoin ETFs reached $8.02 billion, with trading volume hitting $250 billion, as reported by Coinotag. This trend has coincided with Bitcoin's price volatility, peaking at $109,881 before retreating to levels near $101,000 amid broader market uncertainty, a point Coinotag also noted.

The outflows contrast sharply with inflows into Solana-based ETFs, which have drawn $70.05 million on November 3 alone, extending a five-day streak of positive flows, according to CoinEdition. Solana's Bitwise BSOL ETF has raised over $195 million in its first week, outperforming even BlackRock's IBIT during a period of crypto market weakness. Meanwhile, Bitcoin and Ethereum ETFs continue to face redemption pressure. Bitcoin ETFs lost $186.5 million on November 3, with BlackRock's IBIT accounting for the entire outflow, reported by Crypto.News. Ethereum ETFs followed suit, shedding $135.7 million, led by BlackRock's ETHA with $81.7 million in redemptions, per the same Crypto.News piece. Over three days, Ethereum ETFs lost $363.8 million, highlighting a broader shift in institutional preferences.

Market analysts attribute the outflows to a combination of macroeconomic pressures and capital reallocation. The crypto fear and greed index plunged to 21, entering "extreme fear" territory, as investors reacted to a stronger dollar and risk-off sentiment, according to TradingView. Fed Chair Jerome Powell's recent hawkish comments and the U.S. government shutdown have further dampened institutional demand. However, some firms are positioning for long-term gains. Matador, a corporate Bitcoin treasury firm, locked $100 million in Bitcoin during the downturn, planning to accumulate 1% of the total supply over time, according to BeInCrypto. This counter-cyclical strategy mirrors historical patterns, where companies like Strategy have added Bitcoin during price corrections, as BeInCrypto observed.

Despite the outflows, bullish signals persist. Bitwise CIO Matt Hougan forecasts Bitcoin reaching $125,000 to $150,000 by year-end, viewing current retail selling as a pre-reversal capitulation akin to 2020's market dynamics, according to Coinotag analysis. Institutional accumulation remains robust, with major ETFs like IBIT, FBTC, and GBTC continuing to attract capital during dips, the Coinotag piece noted. Additionally, the Amplify XRP 3% Monthly Option Income ETF's DTCC listing has expanded income-generating options for investors, potentially broadening institutional interest in altcoins, as Coinotag also reported.

Price action suggests a fragile balance. Bitcoin's ability to hold above $100,000 will be critical, with a break below this level risking a slide to $93,000, a scenario the Coinotag analysis outlined. Ethereum faces similar pressure near $3,300, with a breakdown threatening a move toward $2,500. Solana's BSOL ETF, however, has shown resilience, with $197 million in inflows amid Bitcoin and Ethereum's struggles, according to Coinotag's Solana report https://en.coinotag.com/solana-etf-inflows-suggest-investor-shift-amid-bitcoin-ethereum-outflows/. This divergence underscores a maturing market where investors are diversifying risk across blockchain ecosystems.

The crypto landscape remains in flux, with regulatory developments and macroeconomic shifts poised to drive further volatility. While ETF outflows signal caution, institutional strategies and innovative products like XRP ETFs suggest a market adapting to new paradigms.