Bitcoin News Today: Bitcoin ETFs Lose $1.11B as Institutions Double Down Amid Diverging Sentiment

US Spot Bitcoin ETFs Bleed $1.11B in Third Consecutive Week of Outflows

Bitcoin spot exchange-traded funds (ETFs) lost $1.11 billion in the week ending November 14, marking the third consecutive week of outflows as the crypto market grapples with a broader correction. According to data from SoSoValue, BlackRock's IBIT, the largest Bitcoin ETF by assets under management, recorded the largest net outflow at $532.41 million. Grayscale's Bitcoin Mini Trust (BTC) also saw a $290 million net outflow during the same period. Total assets under management across spot Bitcoin ETFs now stand at $125.34 billion, with ETFs accounting for 6.67% of Bitcoin's market cap.

The outflows come amid a sharp decline in Bitcoin's price, which has fallen below $95,000 - its lowest level since early May 2025. The selloff follows a 20% drop from its October peak near $126,000, driven by leveraged liquidations and shifting investor sentiment. "The redemptions look more like profit-taking than panic selling," one analyst noted, citing strong liquidity in most funds. However, the sustained outflows have raised questions about the sustainability of institutional demand, particularly after a historic $19 billion in crypto liquidations in October .

Institutional confidence in Bitcoin ETFs has not been entirely eroded. Harvard University, for instance, has tripled its stake in BlackRock's IBIT to $442.8 million, now its largest single investment. Bloomberg ETF analyst Eric Balchunas called the move "as good a validation as an ETF can get," though he noted that endowments remain "super rare" in adopting ETFs according to a Cointelegraph report. The university's investment contrasts with recent redemptions, highlighting a divergence between long-term institutional holders and short-term traders navigating volatile markets.

Market participants are divided on the implications of the outflows. Simon Gerovich, CEO of Metaplanet, argued that ETFs offer "static exposure" to Bitcoin, requiring inflows to grow holdings, a dynamic that does not inherently weaken Bitcoin's fundamentals. Others, like Przemysław Kral of zondacrypto, warned that thin weekend liquidity could amplify price swings, creating opportunities for long-term investors to accumulate at lower levels.

The outflows coincided with macroeconomic uncertainty, including reduced expectations for a December Federal Reserve rate cut and the end of the 43-day US government shutdown. Investors rotated into safer assets like gold and cash, with the SPDR Gold Shares ETF seeing a $235 million position boost by Harvard. Meanwhile, the debut of the first US spot XRP ETF on November 13 attracted $250 million in inflows, signaling shifting capital toward alternative crypto narratives.

Despite the near-term turbulence, some analysts remain bullish. CryptoQuant's Ki Young Ju noted that Bitcoin's bull market remains intact as long as prices stay above $94,000, the average cost basis for investors who entered the market in the past year. The market now awaits a stabilization in key support levels and clearer macroeconomic signals to determine whether the outflows represent a capitulation or a temporary rotation.