Bitcoin News Today: Institutional Inflows Defy Bitcoin's Slide: ETFs Attract $240M Amid Volatility

Bitcoin ETFs ended a six-day outflow streak with $240 million in net inflows on November 6, signaling a potential shift in institutional sentiment despite ongoing price declines for the cryptocurrency. The rebound, led by BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC), marked the first positive flow since October 28, according to a BeinCrypto report, which cited data from Farside Investors and SoSoValue. However, Bitcoin's price continued to slide, falling 2.37% to $100,768, extending its weekly loss to nearly 9%, BeinCrypto reported.

The inflows came as broader market volatility and macroeconomic uncertainties, including the U.S. government shutdown, weighed on risk assets. BlackRock's IBIT alone attracted $112.44 million, while FBTC added $61.64 million, reflecting renewed confidence in low-fee, regulated products, according to a FinanceFeeds report. Ethereum ETFs also saw modest recovery, with $12.5 million in inflows, though Grayscale's ETHE recorded $3.53 million in outflows as investors shifted to more transparent structures, per a separate FinanceFeeds report.

Analysts argue the sell-off is not driven by ETFs but by internal market dynamics. "Bitcoin has been underpriced relative to the macro backdrop," noted Ecoinometrics, highlighting that financial conditions remain loose and equity markets hit record highs despite the crypto downturn, as Cointelegraph reported. On-chain data further suggests resilience: sell-side pressure eased to $469 million from $835 million week-over-week, and stablecoin liquidity remains robust, the Cointelegraph piece added.

The ETF inflows contrast with broader crypto market trends. While Bitcoin ETFs accumulated $240 million, the total crypto ETP outflows for the week reached $246.6 million, driven by $752 million in Bitcoin redemptions, the Cointelegraph piece noted. Meanwhile, altcoin ETFs bucked the trend, with Solana, HBAR, and Litecoin funds attracting steady inflows amid Bitcoin's decline, according to a Yahoo Finance article.

Institutional positioning also offers insight. BlackRock and Fidelity now manage over $100 billion in Bitcoin ETF assets, with IBIT capturing nearly half of all inflows since the products' January 2024 launch, the earlier FinanceFeeds report observed. Market participants view the inflows as a sign of long-term portfolio allocation, though short-term challenges persist. Bitcoin's price stabilization around $100,000 and Ethereum's struggle to reclaim $3,200 remain critical watchpoints, Coinfomania reported.

Whale activity adds another layer of complexity. Santiment data reveals that wallets holding 10–10,000 BTC—controlling 68.62% of the circulating supply—dumped 23,200 BTC since mid-October after a period of aggressive accumulation, EthNews reported. While analysts caution this reflects strategic profit-taking rather than panic selling, the moves could contribute to near-term consolidation.

For now, the ETF rebound suggests institutional investors are recalibrating exposure amid volatility. "Sustained inflows into Bitcoin ETFs are frequently interpreted as an indicator of institutional capital commitment," said one asset manager, according to the earlier FinanceFeeds piece. If the trend continues, it could provide a floor for Bitcoin's price amid broader market uncertainty.