Bitcoin News Today: Harvard, Emory, Sovereign Funds Expand Bitcoin ETF Holdings Amid Outflows

Bitcoin ETF Losses Spike as Price Dips Below $89.6K

Bitcoin's recent slide below $90,000 has pushed ETF investors into the red, with outflows accelerating as the price breaches the critical $89,600 threshold-the flow-weighted average cost basis for all ETF inflows since their January 2024 launch according to Bloomberg. The 11 spot Bitcoin ETFs lost $867 million on Thursday and $462 million on Friday, marking the second-largest single-day outflows since their SEC approval as reported by Decrypt. BlackRock's IBIT, the largest ETF by assets, saw a record $463 million outflow on November 14 alone, exacerbating a three-week trend of redemptions totaling $3.2 billion according to Decrypt.

Despite the turmoil, institutional investors like Harvard University and Emory University have doubled down on Bitcoin ETFs, signaling a long-term strategic shift. Harvard's endowment nearly tripled its IBIT holdings in the third quarter, amassing 6.8 million shares valued at $442.8 million-up from 1.9 million shares in June. The position, now Harvard's largest U.S. holding, accounts for 0.6% of its $56.9 billion endowment. Emory University similarly expanded its exposure, increasing its Grayscale Bitcoin Mini Trust holdings by 91% to 1 million shares, valued at $52 million. These moves underscore a growing appetite among endowments for regulated crypto products, even as short-term volatility intensifies.

The ETF outflows contrast with broader institutional confidence in Bitcoin's long-term potential. Michael Saylor, CEO of MicroStrategy, reiterated his bullish stance, forecasting Bitcoin would outperform gold and the S&P 500 by 2025 despite the recent selloff. Meanwhile, analysts note that universities and sovereign wealth funds, such as Abu Dhabi's Al Warda Investments, are prioritizing ETFs for their regulatory clarity. Al Warda's IBIT holdings surged 230% to 7.96 million shares, valued at $517.6 million.

Market observers highlight the ETFs' role in amplifying Bitcoin's volatility. "ETF flows are now a key driver of price action," said Bloomberg ETF analyst Eric Balchunas, noting that Harvard's IBIT position ranks it 16th among holders. The recent $2.33 billion outflows in November have pushed Bitcoin's price down 13.3% from its October peak, testing institutional resolve. However, some see parallels to Bitcoin's post-ETF debut correction in early 2024, when a 21% drop was followed by a 227% rebound.

Altcoin ETFs, meanwhile, are attracting capital rotation. Canary Capital's XRP ETF drew $243 million in inflows on its debut, while Solana and Litecoin ETFs also saw positive flows https://www.theblock.co/post/379211/bitcoin-ethereum-spot-etfs-440-million-outflows. Analysts suggest this reflects a search for diversification amid Bitcoin's underperformance.