Bitcoin News Today: Crypto's Divide: Retail Sell-Off vs. Institutional Buy-In

The cryptocurrency market faced a significant downturn in late 2025, driven by a surge in retail investor selling of Bitcoin and Ethereum and the launch of a physically-backed Ethereum ETF. Global crypto exchange-traded products (ETPs) recorded $2 billion in outflows last week, the largest since February 2025, according to a CoinShares report. This marked the third consecutive week of redemptions, pushing total outflows to $3.2 billion and reducing assets under management (AUM) in digital asset ETPs from a peak of $264 billion in early October to $191 billion - a 27% decline.

Bitcoin (BTC-USD) ETFs led the outflows, with $1.38 billion leaving the sector last week, while Ethereum (ETH-USD) ETPs lost $689 million, representing 4% of their AUM. The U.S. accounted for 97% of global redemptions, totaling $1.97 billion, as investors reacted to macroeconomic uncertainty and crypto-native whale selling. Germany, however, stood out as a rare bright spot, with $13.2 million in inflows as local investors viewed price weakness as a buying opportunity.

The sell-off accelerated after a deleveraging event on October 10, which liquidated over $19 billion in crypto assets in a single day. Since then, Bitcoin has struggled to regain institutional confidence, with U.S.-listed ETFs extending their bearish streak. On Friday alone, BTC ETFs saw $492 million in outflows, while Ethereum ETFs lost nearly $178 million. BlackRock's IBIT, the largest spot Bitcoin ETF, experienced a record $463.1 million outflow on November 14, further signaling waning retail and institutional appetite.

Ethereum's challenges were compounded by skepticism about its long-term utility. Despite Fundstrat's Tom Lee predicting a "supercycle" akin to Bitcoin's, critics questioned whether Ethereum's technical advancements could justify its valuation in a competitive market. The asset fell below $3,100 on November 16, with Ethereum ETFs losing $1.42 billion in outflows since early November.

Amid the turmoil, institutional demand for Bitcoin remained a counterpoint. Harvard University's endowment tripled its stake in BlackRock's IBIT, now valued at $442.8 million, making it the university's largest publicly disclosed holding. Similarly, Abu Dhabi's Al Warda Investments increased its IBIT holdings by 230%, to $517.6 million. These moves underscored growing institutional acceptance of crypto, even as broader markets struggled. Harvard also bolstered its gold exposure, nearly doubling its SPDR Gold Shares (GLD) holding to $235.1 million.

The launch of a physically-backed Ethereum ETF added another layer of complexity. While the product generated $58.6 million in trading volume on its debut, it failed to stabilize XRP, which slid 4.3% to $2.22 amid $25 million in liquidations. Analysts attributed the weakness to a broader risk-off sentiment and Bitcoin's recent volatility.

Market participants remain divided on the path forward. Nicolai Sondergaard of Nansen noted that ETF flows are likely to stay tied to macroeconomic trends, with outflows persisting if negative factors like hawkish monetary policy or poor employment data persist. Conversely, positive developments - such as regulatory clarity or rate cuts - could spark a reversal.

As the market digests these dynamics, the interplay between retail exodus and institutional entry will likely define the next phase of crypto's evolution.