Bitcoin News Today: Crypto ETF Exodus: Correction or Prolonged Bear Market?

Bitcoin ETFs face record outflows as crypto market grapples with selloffs and uncertainty

According to the report, the U.S. spot bitcoin ETF market has experienced its worst monthly performance on record, with $3.79 billion in outflows in November 2025, surpassing the previous peak of $3.56 billion in February. BlackRock's iShares Bitcoin Trust (IBIT) led the exodus, recording $2.47 billion in redemptions -63% of the total- making it the largest single fund contributor to the crisis. The outflows have intensified as Bitcoin (BTC-USD) fell below $85,000, its lowest level in seven months, and on track for its worst monthly performance since the 2022 crypto collapse. Ether (ETH-USD) ETFs also saw $1.79 billion in outflows, compounding the sector's woes.

The selloff has been driven by a combination of profit-taking, leveraged position liquidations, and shifting macroeconomic sentiment. BlackRock's IBIT alone faced a $903 million outflow on November 21 - the largest single-day redemption since its January 2024 launch. Fidelity's Wise Origin Bitcoin Fund (FBTC) followed with $1.09 billion in outflows this month, contributing to 91% of total U.S. BTC ETF redemptions. Analysts at Bitfinex noted that the outflows reflect "tactical rebalancing" rather than a structural breakdown in institutional demand, citing short-term price volatility and uncertainty around December interest rate cuts as key factors.

Despite the broader selloff, newly launched Solana (SOL-USD) and XRP (XRP-USD) ETFs have attracted $300.46 million and $410 million in inflows, respectively. Solana's ETFs, including Bitwise's BSOL and VanEck's VSOL, have drawn institutional interest, with total inflows reaching $421 million since their October 31 debut. This contrast highlights a shift in capital toward smaller-cap cryptocurrencies as investors seek opportunities amid Bitcoin's decline.

The ETF outflows have amplified Bitcoin's price weakness, with the token dropping as low as $80,553 on November 22. Citi Research estimated that each $1 billion in ETF outflows correlates with a 3.4% drop in BTC's price, underscoring the self-reinforcing nature of these funds. Meanwhile, digital asset treasuries (DATs), which had fueled Bitcoin's rally earlier in 2025, saw inflows plummet to $505 million in November - a 90% decline from October's $10.89 billion peak.

Market participants remain divided on whether the selloff signals a broader bear market or a temporary correction. Alliance DAO's QwQiao warned that markets could face a "50% drawdown" before stabilizing, while Placeholder's Chris Burniske argued that ETFs and DATs could equally amplify downward momentum. Conversely, Bitfinex analysts emphasized that the "structural thesis for Bitcoin remains firm," with long-term institutional adoption still intact.

As December approaches, the crypto market braces for further volatility. With ETF outflows, corporate treasury inflows, and Bitcoin's price all pointing to a bearish trend, investors are left questioning whether the current downturn is a fleeting correction or the start of a prolonged bear market.