Bitcoin News Today: European Funds Drive November Crypto Selloff Amid $5.5B Outflows, ETPs Rally in December Turnaround

Bitcoin logged one of its weakest November performances since 2018, with European markets driving much of the selling pressure. The decline, which saw BTC and ETH drop roughly 20–25%, came as European funds engaged in heavy net selling during local trading hours. In contrast, Asian and U.S. sessions remained relatively stable, highlighting a divergence in regional crypto demand according to market data.

The European-led selloff was a sharp contrast to the early December rally in crypto funds. According to CoinShares, cryptocurrency ETPs added $716 million in inflows last week, building on the previous week's gains and pushing total assets under management above $180 billion. This represents an 8% recovery from November lows, despite a $5.5 billion outflow over the prior four weeks.

Bitcoin was the top performer among crypto assets during the inflow period, drawing $352 million in ETP investments. XRP followed closely with $244 million in inflows, while Chainlink saw a record $52.8 million boost.

Ethereum, meanwhile, recorded modest inflows of $39 million according to CoinShares.

Regional and Institutional Flows Highlight Divergence

European markets remained a key driver of November's decline, with European session trading showing heavy net selling. Data from Presto Research suggests that the imbalance in regional liquidity tilted the broader market, influencing both spot and derivative dynamics. In contrast, Asian and U.S. sessions remained more neutral, with inflows and outflows balancing out during those periods according to market analysis.

The institutional appetite for crypto assets has remained strong despite the recent volatility. U.S.-listed XRP ETFs, for example, recorded 15 consecutive days of inflows, adding $861 million in capital and absorbing nearly 1% of the token's total circulating supply. This has been driven largely by OTC activity, signaling that major financial desks are positioning for regulated use cases.

Market Response and Investor Sentiment

Investor sentiment shifted dramatically in the first two weeks of December, with crypto funds logging inflows for two consecutive weeks. CoinShares attributed a brief pause in inflows on Thursday and Friday to U.S. macroeconomic data pointing to inflationary pressures.

Among issuers, ProShares led inflows with $210 million, while BlackRock, the largest issuer by AUM, saw $105 million in outflows. Other notable names like Cathie Wood's ARK and Grayscale Investments also reported outflows of $78 million and $7 million, respectively.

Looking ahead, traders are advised to monitor European liquidity windows for potential spillovers into December. The pattern of regional demand shaping BTC and ETH volatility underscores the importance of diversification across trading venues and hedging strategies. Analysts also note that ongoing regulatory developments, particularly in the U.S., could unlock further institutional adoption, especially if the SEC resolves key legal uncertainties.

Outlook for Institutional and Retail Adoption

Institutional buying has remained a consistent theme, with OTC trades accounting for nearly 70% of large-block activity since late November. This trend suggests that professional investors are orchestrating a stabilization phase rather than retail-driven volatility. Additionally, European banks like BPCE have continued to expand their crypto services, with plans to offer trading of BTC, ETH, SOL, and USDC to 2 million customers according to business reports.

The broader market for institutional BTC finance is also evolving. BitcoinOS recently raised $10 million to develop zero-knowledge-powered infrastructure for institutional investors, with Greenfield Capital and FalconX among the major backers according to investment news. Meanwhile, Maple Finance partnered with Lido Finance to offer stablecoin loans backed by stETH, allowing institutions to access liquidity without un-staking their positions according to financial updates.

What This Means for Investors

Investors should focus on both macroeconomic signals and regional liquidity patterns as December unfolds. While European markets have led the recent sell-off, U.S. and Asian sessions have shown more resilience. The return of inflows and ETF growth may signal a shift in sentiment, but caution is warranted due to the ongoing volatility.

For long-term holders, particularly in XRP and BTC, the recent accumulation by institutional investors and the regulatory progress in the U.S. and Europe could unlock significant upside. However, near-term fluctuations will likely remain tied to macroeconomic data, geopolitical developments, and regional regulatory changes.