US spot Bitcoin exchange-traded funds (ETFs) experienced a significant reversal on Thursday, erasing the brief period of relief seen earlier in the week. After breaking a five-day outflow streak with $75.4 million in inflows on Wednesday, the funds faced fresh redemptions totaling $903 million on Thursday. This marks the largest outflow day in November and one of the most substantial single-day outflows since these products were launched in January 2024, according to data from Farside Investors.
The $3.79 billion in withdrawals for November positions the month to be the worst on record for US spot Bitcoin (BTC) ETF outflows if subsequent days do not offset the current redemptions. This figure has already surpassed February's $3.56 billion, which previously held the record for the largest monthly outflow since the ETFs debuted.
BlackRock's IBIT Leads November Outflows
Investment giant BlackRock's iShares Bitcoin Trust (IBIT) ETF has been the primary driver of the historic November outflows. The fund has recorded $2.47 billion in net redemptions so far this month, accounting for approximately 63% of the total $3.79 billion withdrawn from all US spot BTC ETFs. The fund also led this week's outflows, with $1.02 billion withdrawn. Ki Young Ju, founder and CEO of analytics platform CryptoQuant, highlighted this week's performance as IBIT's "largest weekly outflow ever."
Fidelity's Wise Origin Bitcoin Fund (FBTC) followed as the second-largest contributor to November's outflows, with $1.09 billion in monthly redemptions. This week alone, the issuer has seen $225.9 million withdrawn, indicating moderate but consistent redemptions. While FBTC's outflows are smaller than IBIT's, both funds have contributed to the broader liquidity drain that has made November surpass February's record for the heaviest month of Bitcoin ETF outflows.
Collectively, IBIT and FBTC account for 91% of the total US spot BTC ETF outflows observed in November.
Bitcoin Price Declines Amidst ETF Outflows
Following the substantial ETF outflows, Bitcoin's price fell to $83,461 on Friday, according to CoinGecko. This drop pushed BTC to its lowest level in seven months, a price point not seen since April. Industry observers suggest that this downturn might be just the beginning.
QwQiao, co-founder of Alliance DAO, reiterated a September warning, expressing concern that the next bear market could be more severe than anticipated. He noted the influx of unsophisticated investors into digital asset treasuries (DATs) and ETFs, suggesting that such market dynamics rarely end well. QwQiao anticipates that markets may need to experience another "50% drawdown" to establish a sustainable foundation.
Chris Burniske, co-founder of crypto venture firm Placeholder, stated that the era of DAT selling has commenced. He cautioned that just as ETFs and digital asset treasuries amplified Bitcoin's ascent, they could equally intensify its downward movement.
Data from DefiLlama indicates that DAT inflows decreased to $1.93 billion in October, representing an 82% reduction from September's $10.89 billion. The data showed a significant drop in inflows following approximately $20 billion in crypto positions being liquidated in October.
At the time of writing, DAT inflows have only reached $505 million. At this pace, November is projected to become the lowest month for DAT inflows in 2025.