Institutions Bet Big on Crypto Stocks as Retail Investors Flee

The crypto market remained in a state of cautious equilibrium on November 21, 2025, as traders balanced optimism over institutional investments with concerns about retail-driven sell-offs and regulatory headwinds. Despite a lack of major price swings, underlying tensions persisted, highlighted by flashblock exploits, ETF outflows, and evolving institutional strategies.

The week's economic calendar loomed large, with U.S. manufacturing and services PMI data expected to influence Federal Reserve policy deliberations. Meanwhile, the crypto sector faced a unique challenge as Base's "flashblock" feature enabled high-frequency traders to extract $1.3 million in profits from the debut of Jesse Pollak's creator coin, JESSE. By leveraging 200-millisecond micro-blocks, snipers secured 26% of the token supply within the same on-chain block, raising questions about market fairness and the role of speed in decentralized finance.

Institutional investors, however, continued to double down on crypto-linked equities. Cathie Wood's Ark Invest added $10 million in Coinbase (COIN) shares and $9 million each in BitMine (BMNR) and Circle (CRCL), signaling confidence in the sector's long-term potential. The firm's Fintech Innovation ETF (ARKF) now holds nearly $58 million in COIN, reflecting a broader trend of buying the dip as crypto stocks traded at multi-year lows.

JPMorgan analysts attributed the ongoing market correction to retail investors pulling $4 billion from spot bitcoin and ether ETFs in November. Unlike October's turmoil, which stemmed from crypto-native futures deleveraging, this round of selling appeared isolated to retail participants. The bank noted that equity ETF inflows hit $96 billion year-to-date, underscoring that crypto and traditional markets were still viewed as distinct asset classes.

Beyond trading dynamics, regulatory scrutiny intensified as JPMorgan closed Strike CEO Jack Mallers' accounts without explanation, reigniting debates about "debanking" in the crypto industry. Mallers' public complaint cited a letter from the bank warning of "concerning activity," though JPMorgan emphasized its commitment to regulatory compliance.

Meanwhile, JPMorgan upgraded Baidu to Overweight, citing the Chinese tech giant's pivot toward AI and cloud computing as a growth engine. The firm projected a 61% revenue surge for Baidu's cloud division in 2026, driven by domestic demand for AI chips and government support. This shift mirrored broader trends in China's tech sector, where self-reliance in AI hardware is accelerating amid U.S. export controls.

On the exchange front, Coinbase announced the acquisition of Solana-based trading platform Vector to enhance its on-chain capabilities. The deal, expected to close by year-end, aims to streamline token listings and expand support for Solana's booming DEX ecosystem, which has already processed $1 trillion in volume in 2025.

As the market navigated these crosscurrents, smaller players also made waves. WhiteBIT marked seven years of operations by expanding its global footprint and launching a trust-focused brand campaign according to press release, while GeeFi's GEE token presale saw 50% of its first phase sold in 24 hours, drawing comparisons to Cardano's (ADA) ecosystem growth.