Bitcoin ETFs See $492M Outflow as BTC Dips Below $100K

The US Bitcoin ETF market registered a daily total net outflow of $492.1 million on Friday, November 14, marking the third consecutive day of negative outflows for crypto-linked investment products. This latest round of withdrawals comes just one day after Bitcoin exchange-traded products registered their second-worst daily performance with $869.86 million in net withdrawals on Thursday. The consistent capital flight from these investment vehicles has pushed the weekly total to over $1.11 billion in net outflows, creating one of the most challenging periods for cryptocurrency investment products since their launch.

The sustained outflows represent a clear reflection of current market sentiment, which has turned predominantly bearish over recent weeks. Market analysts note that the performance of US-based Bitcoin ETFs has consistently mirrored broader market conditions, with the current outflow pattern indicating deepening investor pessimism. The consecutive weeks of capital outflows have removed any doubt about the deteriorating climate for cryptocurrency investments, with institutional players leading the retreat from digital asset exposure.

Leading the massive capital outflow was BlackRock’s iShares Bitcoin Trust (IBIT), the largest BTC exchange-traded fund by net assets, which saw $463.1 million withdrawn on Friday alone. This substantial withdrawal from the industry leader signals that even the most established Bitcoin investment vehicles are facing significant pressure from institutional investors reducing their exposure. The scale of IBIT’s outflow alone accounted for nearly 95% of the day’s total withdrawals, highlighting its dominant position in the market and the concentrated nature of the selling pressure.

Grayscale Bitcoin Trust (GBTC) recorded the second-highest net outflow at $25.09 million, while Fidelity Wise Origin Bitcoin Fund (FBTC) and WisdomTree Bitcoin Trust (BTCW) contributed additional outflows of $2.06 million and $6.03 million respectively. The only bright spot in an otherwise bleak landscape was Grayscale’s Bitcoin Mini Trust (BTC), which posted a modest capital influx of $4.17 million. However, this minor positive flow was insufficient to offset the overwhelming negative sentiment driving the broader market.

Unsurprisingly, the woeful performance of Bitcoin ETFs has coincided with Bitcoin’s recent decline below the crucial $100,000 psychological level. As of current trading, the premier cryptocurrency is hovering around $95,500, showing only tame bullish action in the past 24 hours. According to data from CoinGecko, BTC has declined by nearly 7% over the past seven days, reflecting the direct correlation between ETF flows and price movement that has been evident since these investment products launched in 2024.

The relationship between Bitcoin ETF performance and BTC price has become increasingly pronounced, with the current outflows creating substantial selling pressure that continues to affect the market leader. Market observers note that the dip below $100,000 represents not just a technical breakdown but a significant psychological blow to investor confidence. The sustained selling pressure from both spot investors and ETF participants has created a feedback loop that continues to weigh heavily on Bitcoin’s price recovery prospects.

While the current market conditions appear challenging, analysts suggest that an uptick in Bitcoin ETF demand could help kickstart a turnaround for the cryptocurrency. The historical pattern shows that periods of sustained ETF inflows have typically preceded significant price rallies. However, with weekly outflows now exceeding $1.11 billion and showing no immediate signs of abating, market participants remain cautious about the near-term prospects for both Bitcoin and the ETFs that track it.