Bitcoin ETFs Experience $400 Million in Outflows Despite Market Rally
On November 14, Bitcoin spot exchange-traded funds (ETFs) faced a notable downturn, with institutional investors withdrawing over $400 million despite Bitcoin reaching a record high of nearly $94,000. The broader crypto market remained positive, influenced by Bitcoin’s rally, yet institutions opted to withdraw significant amounts from Bitcoin ETFs.
Institutional Pullback Despite Market Optimism
Data from SoSoValue, a leading crypto ETF tracker, shows that Grayscale's Bitcoin Trust (GBTC) experienced outflows of $69.59 million on Thursday, reducing its cumulative net inflow to $20.25 billion. As of November 14, GBTC's daily trading volume was 5.19 million shares, valued at $367.35 million, with total net assets of $19.13 billion.
This decline commenced on November 14, following positive inflows that began after Donald Trump’s election victory on November 6. On November 13, Grayscale’s mini BTC ETF recorded $61.3 million in net inflows, making it the third best-performing fund for that day according to Coinspeaker.
Other major Bitcoin ETFs also reported significant outflows: Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw $176 million withdrawn, ARK 21Shares Bitcoin ETF (ARKB) had $161.72 million in outflows, and Bitwise Bitcoin ETF (BITB) recorded $113.94 million withdrawn. WisdomTree Bitcoin Trust (BTCW) and Invesco Galaxy Bitcoin ETF (BTCO) reported no changes, maintaining a neutral position with no activity on November 14.
BlackRock and VanEck Defy the Trend
In contrast to the overall trend, BlackRock's iShares Bitcoin Trust (IBIT) and VanEck’s Bitcoin ETF (HODL) reported positive inflows of $126.53 million and $2.50 million, respectively. These funds maintained their positive trajectory amid negative market sentiment. Notably, on November 11, BlackRock’s IBIT contributed significantly to the industry’s $509 million inflow.
Over the past six weeks, BlackRock’s IBIT has been among the top-performing funds, with consistent daily inflows except for minor outflows on October 10 and November 5. This strong performance amidst mixed market signals illustrates a divergence in investor confidence, indicating that strategic funds continue to attract institutional interest even when caution prevails across most other Bitcoin ETFs.