US Bitcoin exchange-traded funds are experiencing their worst month on record, with investors withdrawing approximately $3.57 billion through November 25, approaching the previous record of $3.6 billion set in February.
BlackRock‘s iShares Bitcoin Trust, the market’s dominant spot Bitcoin ETF, saw $2.2 billion in withdrawals this month — a jump from October’s $291 million in outflows, which had been its second-weakest month, FactSet data shows.
The cryptocurrency has fallen from its October all-time high above $126,000 to approximately $87,900 as of Tuesday, or a drop of more than 30%.
Market analysts attribute the selling pressure to several factors. Stablecoin supply has declined for the first time in months, with approximately $4.6 billion leaving the crypto ecosystem since early November, indicating capital is exiting digital assets entirely rather than moving to the sidelines.
Bitcoin posted $903 million in single-day outflows on November 20 — the second-largest daily redemption since ETFs launched in January 2024.
Market conditions have created a feedback loop: thin liquidity means ETF selling pushes prices lower, triggering additional redemptions. US Treasury yields above 4.5% are also offering investors safer alternatives with guaranteed returns, making risk assets like Bitcoin less attractive.
“With the macro environment becoming less certain, investors tend to de-risk across assets, which often means trimming exposure to crypto and other risk-sensitive stocks,” said Frank Chaparro, head of content at crypto trading firm GSR.
The outflows contrast with September and October, when Bitcoin ETFs attracted $3.53 billion and $3.42 billion in new investments.
Market observers note capital flowing into recently launched ETFs tracking alternative cryptocurrencies such as Solana, Litecoin, XRP, and Dogecoin. Solana ETFs attracted $531 million in their first week after launching in late October, even as Bitcoin funds hemorrhaged capital.
Research from Citi indicates Bitcoin’s price drops roughly 3.4% for every billion dollars withdrawn from ETFs, a pattern consistent with the cryptocurrency’s recent decline.
Despite the record redemptions, cumulative Bitcoin ETF inflows since launch still total $57.4 billion, with total net assets of $113 billion making up roughly 6.5% of Bitcoin’s market capitalization, according to market data.
November has historically been a strong month for cryptocurrency performance, making this year’s decline particularly notable. The cryptocurrency is now trading at its lowest level since April and has posted its worst monthly performance since 2022.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
