Bitcoin News Today: Investors Abandon Bitcoin ETFs, Altcoins Attract Inflows Amid November Exodus

Bitcoin ETFs Lost $1.22 Billion in Fourth Week of Outflows Amid Market Correction

U.S. spot bitcoin exchange-traded funds (ETFs) recorded $1.22 billion in net outflows during the week ended November 21, extending their streak of negative flows to four consecutive weeks, according to data from SoSoValue. This brought cumulative outflows for the month to $4.34 billion, with BlackRock's IBIT-the largest bitcoin ETF-accounting for $1.09 billion of the weekly redemptions according to data from SoSoValue. The outflows coincided with a sharp correction in the broader cryptocurrency market, as Bitcoin fell below $82,000, its lowest level in seven months.

The November exodus marked the worst monthly performance for U.S. bitcoin ETFs since their January 2024 debut. Total redemptions for the month reached $3.79 billion, surpassing the previous record of $3.56 billion set in February. BlackRock's IBIT led the outflows, with $2.47 billion withdrawn in November-63% of the total-amid declining investor confidence and a waning rally driven by digital asset treasuries according to analysis. "The euphoria from earlier this year has been fully exhausted," said LVRG Research's Nick Ruck, highlighting the shift from speculative fervor to institutional caution.

The sell-off intensified as Bitcoin's price slump deepened, with the asset trading at $87,348 as of November 24, down 1.2% in the past 24 hours. The cryptocurrency was on track for its worst month since the 2022 market collapse, with total market capitalization shrinking by over $350 billion in the wake of the ETF outflows. Citi Research noted that for every $1 billion withdrawn from bitcoin ETFs, prices typically drop 3.4%, amplifying downward pressure.

While bitcoin ETFs struggled, newly launched Solana (SOL-USD) and XRP (XRP-USD) ETFs bucked the trend, attracting $300.46 million and $410 million in net inflows, respectively. These products have drawn institutional interest despite broader market weakness, with Solana ETFs posting a 19-day inflow streak and XRP funds adding $179.6 million in the week ending November 21. Analysts suggest investors are rotating into altcoins with perceived growth potential, though sustainability remains uncertain.

The ETF-driven selloff also impacted corporate Bitcoin holdings. Digital asset treasury inflows, which had surged earlier this year, fell 82% in October and grew only marginally in November, signaling waning institutional accumulation. Meanwhile, leveraged traders faced liquidations totaling $630 million in the past 24 hours, with long positions accounting for 65% of the losses.

Despite the outflows, some market participants see potential for a rebound. On November 21, bitcoin ETFs saw a $238 million inflow-the first positive session in nearly a month-led by Fidelity's FBTC and Grayscale's Bitcoin Mini Trust. BlackRock's IBIT, despite a $122 million outflow, maintained 69% of total ETF trading activity, underscoring its dominant role in the market.

Bitcoin's path to recovery remains uncertain. Analysts at Kronos Research predict consolidation between $85,000 and $90,000, while Alliance DAO's QwQiao warned of a potential 50% further decline. The Federal Reserve's December rate-cut odds, now at 69%, offer a glimmer of hope for risk assets, but macroeconomic fragility and shallow liquidity continue to weigh on sentiment.