Bitcoin News Today: Crypto ETF Exodus Accelerates as Market Resets, Gold Outperforms

Bitcoin spot ETFs saw a record $903 million in net outflows on November 20, the second-largest withdrawal ever recorded, driven by continued investor caution amid a broader crypto market slump. The outflows marked the fourth consecutive day of redemptions for the U.S. Bitcoin spot ETF, which lost $220.1 million in the latest 24-hour window, according to Farside Investors. BlackRock's iShares Bitcoin Trust (IBIT), the largest crypto ETF, accounted for $355.5 million of the outflows, while ARK's ARKB saw $29.7 million in redemptions.

The selloff accelerated a broader trend of declining confidence in crypto assets. BlackRock's IBIT, which has been a bellwether for the sector, posted a record $1.26 billion in outflows this month alone, the largest monthly redemption since its January 2024 launch. The ETF's price has dropped 16% to $52, reaching levels last seen in April as traders increasingly hedge against further declines by purchasing put options at a seven-month high cost.

Ethereum ETFs also faced pressure, with $262 million in outflows recorded on November 20-the eighth straight day of redemptions. CoinShare reported that Ethereum ETFs lost $689 million last week, representing 4% of their assets under management. Meanwhile, Bitcoin ETFs have seen cumulative outflows of $2.9 billion this month, a record level of withdrawals that would rank as the largest on record if sustained.

The broader crypto market has mirrored these fund flows. Bitcoin fell below $90,000 for the first time in seven months, erasing a 29% gain from its October peak and wiping $1.1 trillion off its market capitalization. Analysts attribute the decline to a combination of macroeconomic uncertainty, forced liquidations, and a weakening correlation with gold-a traditional safe-haven asset that has outperformed Bitcoin by 25 percentage points since October 10.

Market participants point to tightening financial conditions and shifting institutional positioning as key factors. "The speed and magnitude of the move suggest a broader reset," said David Puell, a research analyst at ARK Invest, noting that whales have been selling at the highest rate since 2021. CoinShares' Head of Research, James Butterfill, added that monetary policy uncertainty and crypto-native whale sellers are the primary drivers of the recent outflows.

Amid the selloff, Solana ETFs bucked the trend with $23.66 million in net inflows, offering a rare bright spot in an otherwise bearish landscape. However, the overall picture remains grim: total assets in digital asset ETPs have fallen 27% from their early October peak, dropping to $191 billion from $264 billion.