Long-term investors maintain positions, despite recent market fluctuations.
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On November 20, spot Bitcoin $87,191 ETFs trading in the U.S. witnessed significant net outflows amounting to $903 million. This marked the largest daily loss since the tariff shock in February. The data highlights a swift shift in investor sentiment as they move away from riskier assets.
ContentsInstitutional Withdrawals Pressure BitcoinStock Downturn Impacts Cryptos Institutional Withdrawals Pressure Bitcoin
According to data from SoSoValue, eight different Bitcoin ETFs in the U.S. experienced a total net outflow of $903.11 million. The most significant withdrawal of $355.5 million occurred in BlackRock’s IBIT fund. Similarly, Grayscale’s GBTC lost $199.35 million, and Fidelity’s FBTC faced a $190.4 million outflow. Other funds from Bitwise, Ark & 21Shares, VanEck, and Franklin Templeton also experienced outflows.
The total outflow registered is the highest since an unexpected trade tariff announcement by President Donald Trump on February 25. BTC Markets analyst Rachael Lucas described the recent activity not as a bear market reversal but as a significant sentiment shift. Lucas points out that Nvidia’s financial reports weakened risk perception across the market, with tech company volatility constricting liquidity everywhere.
Stock Downturn Impacts Cryptos
Nvidia reported a 62% annual revenue increase in its third-quarter financials announced Wednesday. However, receivables reaching $33.4 billion concerned investors. The company’s shares ended Thursday 3.15% lower at $180.64. The S&P 500 dropped by 1.56%, Nasdaq by 2.15%, while crypto-related firms like Coinbase, BitMine, and Strategy saw losses of 7.44%, 10.83%, and 5%, respectively.
The price of Bitcoin also dropped below $85,000 as U.S. employment figures weakened interest rate cut expectations, increasing selling pressure. Despite this, the cumulative inflows to ETFs remain at $57.4 billion, representing 6.5% of Bitcoin’s market capitalization. Lucas noted that “institutions aren’t abandoning ship, just trimming their sails,” indicating that long-term investors are maintaining their positions.
Ethereum $2,853-based ETFs also witnessed a $261.6 million outflow on the same day, while altcoin ETFs showed positive inflows. Bitwise’s XRP ETF attracted $105 million on its launch day, and Solana $135 ETFs recorded a positive flow of $23.66 million.
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