Bitcoin News Today: Bitcoin ETFs Lose $2.6B as Harvard, Saylor Double Down

Bitcoin's institutional demand has sharply declined, with outflows from spot ETFs hitting $2.3 billion in November-a 60% drop from recent peaks-raising concerns about a potential market realignment. The exodus reflects a three-week de-risking phase, with $2.6 billion withdrawn from Bitcoin ETFs as investors shifted toward cash, bonds, and gold amid macroeconomic uncertainty. This follows a record $1.1 billion outflow on Feb. 25 and underscores growing caution as the U.S. government emerges from its historic shutdown, reducing expectations for a Federal Reserve rate cut.

The sell-off accelerated after Bitcoin fell below $100,000 on Nov. 13, dropping 4.8% in 24 hours to $94,890.52- the lowest level since early May 2025. Derivatives positioning exacerbated the decline, with $190 million in Bitcoin long futures liquidated as prices cratered. Institutional risk limits triggered further ETF redemptions, while rotation into alternative crypto assets like XRP and Solana ETFs remained modest.

Not all institutions are retreating, however. Harvard University's endowment increased its BlackRock Bitcoin ETF holdings to $442.8 million, bucking the trend of major withdrawals. Meanwhile, MicroStrategy's Michael Saylor confirmed the company is "accelerating purchases" of Bitcoin, accumulating 487 BTC worth $49.9 million in early November. These moves highlight divergent strategies as market participants navigate volatile conditions.

The outflows do not signal structural flaws in ETFs, which processed redemptions efficiently without operational disruptions. Total assets under management across Bitcoin ETFs remain above $80 billion, with the $2.6 billion in withdrawals representing just 3% of holdings-a level consistent with routine rebalancing during periods of uncertainty. Analysts note the pullback mirrors historical patterns seen during risk-off episodes, such as the 2025 volatility following Bitcoin's $126,000 peak in October.

Institutional infrastructure is evolving to accommodate shifting demand. Anchorage Digital and Mezo launched a partnership enabling low-cost Bitcoin-backed loans, allowing institutions to borrow against BTC holdings at 1% fixed rates. Separately, Cantor Fitzgerald and Maple Finance executed a Bitcoin-collateralized loan, signaling Wall Street's growing embrace of crypto credit markets. These innovations aim to enhance liquidity for holders amid the current selloff.

Regulatory developments continue to shape the landscape. The GENIUS Act, enacted in 2025, established a U.S. framework for payment stablecoins, mandating 1:1 reserve backing and stricter oversight. Meanwhile, the Trump administration's strategic Bitcoin reserve initiative-allocating forfeited BTC to a permanent fund-has gained traction, with the Czech National Bank also exploring similar reserves.

Bitcoin's path forward hinges on stabilizing above key support levels and improving macroeconomic clarity. At $94,890.52, the asset faces a 25% drawdown from October highs, testing technical resilience. Whether this marks a capitulation bottom or extended consolidation remains uncertain, but institutional rotation and product innovation suggest the market is adapting to a new phase of maturation.