Ethereum News Today: Institutional Exodus Siphons $754M from Bitcoin, Ethereum ETFs as Solana Gains $197M

Bitcoin and Ethereum exchange-traded funds (ETFs) faced a combined $754 million in outflows over the past week, as market participants shifted capital toward altcoin alternatives like Solana, signaling growing institutional caution in the crypto sector. The redemptions, driven by major players including BlackRock, underscore a broader reallocation strategy amid a volatile macroeconomic landscape and shifting risk appetites. Meanwhile, Solana's ETFs attracted $197 million in inflows, highlighting renewed interest in high-performance blockchains as investors seek diversification, according to a Coinotag analysis.

The outflows from Bitcoin ETFs totaled $543.59 million, with BlackRock offloading 2,724 BTC—worth approximately $297.93 million—reducing its Bitcoin holdings to 802,811 BTC, valued at $87.81 billion. Ethereum ETFs followed suit, shedding $210.43 million, including 31,754 ETH ($121.94 million) from BlackRock, which now holds 4,002,725 ETH, worth $15.37 billion. Analysts attribute the sell-offs to a combination of regulatory uncertainty, competition from layer-1 alternatives, and a broader rotation into equity markets, which have outperformed digital assets in recent months, a Coinotag analysis noted.

Solana's BSOL ETF, however, emerged as a standout performer, drawing $197 million in inflows—nearly four times the combined inflows of HBAR and Litecoin ETFs—and marking its second-largest weekly inflow ever. The surge reflects growing institutional interest in scalable blockchain networks, with Bitwise's BSOL ETF offering an estimated 7% annual yield through staking rewards. Market analyst Lark Davis noted that Solana's momentum "underscores the appeal of scalable networks in a maturing market," as Coincodex reported.

The selloffs coincided with extreme fear in the crypto market, as the Crypto Fear and Greed Index plunged to 21—a level not seen since April 2025. This follows the Federal Reserve's $37 billion liquidity injections, which failed to spark a rally in crypto assets. Instead, Bitcoin fell nearly 5% in November, while Ethereum dropped 9%, despite spot Ethereum ETFs adding $114 million in inflows last week. The disconnect between central bank actions and crypto prices has raised questions about the sector's sensitivity to macroeconomic shifts, as Yahoo Finance reported.

Ethereum's price chart, however, showed a glimmer of optimism. The asset formed a bullish flag pattern on the weekly chart, with its price rebounding from a low of $1,394 in April to $4,953 in September. Spot Ethereum ETFs have cumulatively added $14.3 billion in inflows since their July 2024 launch, led by BlackRock's ETHA fund, which now holds $15.15 billion in assets. Vitalik Buterin recently praised Ethereum's ZKsync Atlas upgrade, which aims to enhance transaction speed and liquidity, as crypto.news reported.

Despite the outflows, some analysts remain cautiously optimistic. Bitfinex analysts project Bitcoin could reach $140,000 by November if ETF inflows double and the Fed announces monetary easing. They cited seasonal Q4 strength and potential ETF inflows of $10–$15 billion as key drivers. Meanwhile, Solana's price correction—down over 20% post-ETF launch—has sparked debate about short-term volatility versus long-term institutional demand, as FinanceFeeds reported.

The broader market remains cautious. Open interest in crypto perpetual contracts has stagnated below $10 billion, while options activity suggests continued hedging demand. Derivatives platforms like Bybit reported flat notional open interest after a $6 billion liquidation event in October, reflecting fragile sentiment. Yet, DeFi protocols such as World Liberty Financial (WLF) saw their WLFI token rebound 25% following an airdrop, hinting at pockets of speculative interest.