Bitcoin News Today: Bitcoin ETFs Bleed $1.3B as Institutional Buyers Step In

Bitcoin's recent price retreat below $90,000 has ignited fresh concerns about market volatility, with institutional outflows and bearish sentiment amplifying uncertainty. The cryptocurrency, which hit a record $126,200 in early October, has since erased its 2025 gains and now trades at ~$93.6K. This selloff has been exacerbated by a surge in redemptions from major crypto ETFs, with U.S. spot Bitcoin ETFs recording $1.32 billion in outflows between November 10–14 alone. BlackRock's IBIT, the largest U.S. bitcoin ETF, led the exodus, losing $532.4 million during the period, while Fidelity's FBTC saw $89 million withdrawn.

The bleeding continued into the following week, with Bitcoin ETFs logging a fourth consecutive day of outflows. BlackRock's IBIT alone faced $145.6 million in redemptions, pushing its price down 16% to $52-a-level last seen in April. The ETF's struggles reflect broader market anxiety, as put options on Bitcoin have surged to a seven-month high relative to calls, signaling aggressive hedging against further declines.

Despite the turmoil, some institutional players are capitalizing on the dip. El Salvador added 1,098 bitcoin tokens (~$100 million) to its reserves in the past week, while MicroStrategy (MSTR) purchased 8,178 BTC at an average price of $102.2K. Morgan Stanley also sold $104 million in structured notes tied to IBIT, underscoring shifting risk appetites. Analysts note these moves highlight a growing divide: while retail and institutional investors retreat, others view the pullback as a buying opportunity.

The selloff has also exposed vulnerabilities in the ETF structure. BlackRock's IBIT has seen a record $1.26 billion in outflows this month, marking the largest monthly redemption since its January 2024 launch. Meanwhile, Ethereum ETFs fared worse, with no major inflows recorded and Grayscale's ETHE losing $121.8 million. The broader market's woes are compounded by regulatory uncertainty, as MSCI's potential exclusion of crypto-focused firms like Strategy from major indices could trigger up to $8.8 billion in outflows.

Technical indicators suggest the pain may not abate soon. On-chain analysts have identified key support levels at $89,400 and $82,400 for Bitcoin, with a worst-case scenario pointing to a potential drop toward $45,500. The Cumulative Value Days Destroyed (CVDD) model-a historical predictor of Bitcoin bottoms-reinforces these concerns, suggesting prolonged selling pressure could deepen the downturn.

Binance CEO Richard Teng attributed the volatility to broader market deleveraging, noting Bitcoin's performance aligns with cycles seen in traditional asset classes. "Consolidation is healthy for the industry to find its feet," he said, acknowledging the 21.2% November drop but emphasizing the cryptocurrency's 1.5-year gain of over 100%.

The sell-off has also spurred regulatory developments. Dimensional Fund Advisors became the second firm to secure SEC approval for an ETF-mutual fund hybrid, signaling growing institutional acceptance of digital assets. However, challenges persist, including fragmented regulations and security risks, which continue to stifle mainstream adoption.