Bitcoin News Today: Investors Ditch Bitcoin, Ethereum ETFs as Solana, XRP Gain Momentum

U.S. crypto ETFs have experienced a stark divergence in investor sentiment this month, with Bitcoin and Ethereum funds hemorrhaging billions while Solana and XRP products attract inflows amid a broader market selloff. Bitcoin spot ETFs alone saw $903 million in net outflows on November 20, the second-largest single-day withdrawal since their January 2024 debut, with BlackRock's iShares Bitcoin Trust (IBIT) leading the exodus at $355.5 million. Over the month, U.S. Bitcoin ETFs have collectively bled $3.79 billion, a record outflow that underscores growing risk-off positioning as institutional investors lock in profits ahead of year-end.

Ethereum ETFs fared no better, with $262 million in outflows on November 20 and a cumulative $1.79 billion drained from the product category this month according to reports. The streak of redemptions for ETH ETFs stretched to eight days before a $55.71 million inflow on November 21 briefly halted the decline. However, the Ethereum price remains below $2,800, down 28.9% over 30 days, despite the recent inflows. Fidelity's FETH led the recovery with $95.4 million in fresh capital, while BlackRock's ETHA posted $53.68 million in outflows, highlighting mixed investor behavior.

In contrast, Solana and XRP ETFs have drawn attention as safe havens in a turbulent market. Solana ETFs have seen $476 million in cumulative inflows since their October 28 debut, with a $48.5 million single-day inflow on November 20 marking the second-largest monthly addition. XRP ETFs also attracted $118.15 million in inflows on November 20, bucking the trend of Bitcoin and Ethereum redemptions. The outflows for BTC and ETH ETFs have totaled $3.79 billion and $1.79 billion respectively in November, while Solana and XRP ETFs have added $476 million and $300.46 million according to data.

Market analysts attribute the outflows to a combination of technical breakdowns, institutional profit-taking, and shifting risk appetite. "Institutional investors are leading the charge, with ETF outflows signaling profit-taking and risk-off positioning," Rachael Lucas, crypto analyst at BTC Markets, told The Block according to reports. Przemysław Kral of zondacrypto noted that while the outflows reflect caution, Bitcoin's price action - down over 9% in 24 hours to $83,884 - suggests further declines may be imminent, though long-term holders continue to accumulate.

The ETF landscape has shown signs of stabilization in recent days. On November 25, Bitcoin and Ethereum ETFs recorded $129 million and $78 million in net inflows, respectively, with Fidelity's FBTC and BlackRock's IBIT leading the charge. Ethereum's inflow streak, which ended an eight-day outflow cycle, reached $60.8 million on November 27, driven by BlackRock's ETHA. These fluctuations highlight the market's sensitivity to short-term sentiment shifts, even as broader trends point to structural challenges for BTC and ETH.

For investors, the divergent ETF flows signal a complex landscape. While Bitcoin and Ethereum remain under pressure, emerging altcoin ETFs like Solana and XRP are gaining traction, reflecting a search for value in a bearish environment. As the year-end approaches, market participants will likely remain attuned to technical indicators and regulatory developments that could reshape the ETF narrative.