Bitcoin News Today: Bitcoin ETFs Turn from Growth Engine to $3B November Exodus as BlackRock Leads

Bitcoin ETFs Face Record $3 Billion Outflows in November as BlackRock Leads Exodus

Bitcoin exchange-traded funds (ETFs) are on track for their worst month on record, with cumulative outflows nearing $3 billion in November as BlackRock's iShares Bitcoin Trust (IBIT) logged its largest single-day redemption of $523 million. The redemptions have accelerated a five-day losing streak for U.S. spot Bitcoin ETFs, which saw an additional $372 million in net outflows on Tuesday. BlackRock alone accounted for $2.1 billion of November's total outflows, underscoring its dominant role in the crypto-asset class.

The selloff coincides with Bitcoin's price slump, which has dropped nearly 30% from its October peak above $126,000 to a seven-month low below $90,000. The decline has triggered profit-taking and risk-off sentiment, with investors shifting capital to safer assets like gold and cash. "The average spot Bitcoin ETF buyer is near a $90,146 cost basis, leaving most investors roughly flat or in the red at current levels," noted Jim Bianco of Bianco Research. The average purchase price aligns with Bitcoin's recent trading range, amplifying redemption pressure as holders reassess exposure.

November's outflows threaten to surpass February's record $3.56 billion in redemptions, a rare weak spell for ETFs despite the month historically averaging a 41.22% rally for Bitcoin. Analysts attribute the exodus to macroeconomic uncertainty, including the U.S. government shutdown and shifting expectations for Federal Reserve rate cuts. "The crypto market entered a hangover in August, driven by borrowed money," said Kraken economist Thomas Perfumo, adding that momentum peaked during the summer.

While BlackRock's IBIT remains the largest Bitcoin ETF by assets under management ($73 billion), its price has fallen 19% quarter-to-date. Other funds, such as Grayscale's Bitcoin Mini Trust (BTC) and Franklin Templeton's EZBC, have also faced outflows, though some, like Grayscale's BTC, recorded $139.6 million in inflows on Nov. 18. The mixed flows highlight a fragmented market, with investors rotating into alternative crypto products amid broader risk aversion.

Bitcoin's technical outlook remains bearish, with the asset testing support levels below $90,000 and a death cross pattern forming on its moving averages. Institutional caution has deepened, as treasury firms that purchased nearly $50 billion in Bitcoin over the past year now trade at discounts to net asset value. "ETF outflows combined with long-term holder sales have tightened liquidity, pushing prices lower and highlighting weakening confidence," said Pepperstone's Dilin Wu.

Despite the selloff, Bitcoin ETFs still hold over $80 billion in assets, with Standard Chartered's Geoff Kendrick noting they were "the primary driver of Bitcoin's momentum in 2025". However, the November rout underscores the volatility inherent in crypto-linked products, even as the ETF structure has proven resilient to large-scale redemptions.