Bitcoin News Today: Bitcoin ETFs Bleed as Solana Funds Surge in Bifurcated Market

Bitcoin ETFs saw $238 million in inflows last week as Ether funds ended an eight-day outflow streak, signaling shifting dynamics in crypto markets amid a broader selloff in leading digital assets. The rebound came after a turbulent stretch for Bitcoin exchange-traded funds, which had lost $2.96 billion in November-the second-worst monthly performance on record-driven by a record $523 million outflow from BlackRock's IBIT on Nov. 19, the largest single-day redemption since the fund's January 2024 debut.

The iShares Bitcoin Trust, the largest spot Bitcoin ETF with $72.76 billion in assets, has now posted five consecutive days of net outflows, totaling $1.43 billion, as bitcoin prices slid below $90,000-a seven-month low. Despite the declines, some analysts argue institutional investors are recalibrating rather than abandoning the asset. Vincent Liu of Kronos Research noted that "record-high IBIT outflows signal institutional recalibration, not capitulation," with major allocators trimming exposure and testing entry points amid macroeconomic uncertainties according to market analysis.

Ether ETFs, meanwhile, reversed their losing streak with $55.7 million in inflows on Nov. 21, led by Fidelity's FETH, which drew $95.4 million. The reversal followed an eight-day outflow period that erased $1.28 billion in Ethereum fund assets, as traders liquidated leveraged longs amid a 15% weekly slump in ETH prices.

While Bitcoin and Ether struggled, Solana ETFs continued to outperform. Bitwise's BSOL, the first U.S. spot Solana ETF with integrated staking, surged past $500 million in assets under management within 18 days of its Oct. 30 launch. The fund, which stakes 100% of its holdings to capture over 7% annual rewards, attracted $424 million in inflows between Nov. 3 and Nov. 19, accounting for 89% of total Solana ETF inflows during that period. Analysts attribute the success to BSOL's 0.20% fee structure and yield advantages, which have drawn both retail and institutional demand.

The divergence in fund performance highlights a broader market bifurcation. While Bitcoin ETFs face redemptions as prices fall below $90,000-a 30% drop from its October peak-Solana's ETFs have continued to attract capital even as the underlying asset trades near a 30% discount to its $186 high according to market reports. This trend underscores growing investor appetite for alternative crypto assets with built-in yield mechanisms, particularly as macroeconomic headwinds, including the U.S. government shutdown and Federal Reserve policy uncertainty, weigh on risk-on sentiment according to analysts.