Record withdrawals from US Bitcoin ETFs: $3.79 billion soared in November

October, nicknamed “Uptober” by crypto market enthusiasts, will have played a bad trick on investors. And now November arrives with its blade even sharper. Bitcoin is falling, ETFs are emptied like glasses after drunkenness, and the collective euphoria has given way to icy silence. While some see it as a simple slack, others fear a real shift. One thing is certain: the market is bleeding, and the figures are not a temporary scratch.

Bitcoin emptied by Wall Street: $3.79 billion gone, IBIT and FBTC in the lead

Despite a brief return to inflows recently, the massive outflows recorded in November on US Bitcoin ETFs reflect a sudden reversal of confidence. At the heart of this decline, BlackRock, via its IBIT ETF, recorded $2.47 billion in withdrawals, or 63% of total outflows. Behind, Fidelity (FBTC) follows with 1.09 billion evaporated over the same period. Together, they form a duo responsible for 91% of capital flight of the month.

On November 20, the day became historic: $903 million went up in smoke in a few hours, marking one of the worst days since the launch of these products in early 2024.

In a tweet that went viral, Ki Young Ju, CEO of CryptoQuant, alert :

BlackRock's Bitcoin ETF just recorded its largest weekly outflow ever: $1.09 billion so far.

This hemorrhage can be explained by a febrile macroeconomic climate, combined with growing disillusionment with the short-term interest of these financial products backed by a faltering Bitcoin.

Liquidations, DATs and alarmist tweets: the signals of a brutal crypto cleanup

ETFs aren't the only ones struggling. The wind is also blowing on Digital Asset Treasuries (DAT), these instruments held by crypto companies and funds. In October, inflows fell by 82%, from $10.89 billion to just $1.93 billion. November could do even worse: barely $505 million recorded at mid-month.

The market has not only lost its appetite: it is vomiting its excesses. QwQiao, co-founder of Alliance DAO, denounces this blind rush :

There is a large cohort of naive money, who know nothing about crypto, buying DATs and ETFs. It never ends well. It may take another 50% correction for these people to liquidate their positions, before the market can lay a solid foundation and restart the supercycle.

And he drives the point home: a drawdown of 50% would perhaps be necessary to find solid foundations.

Leverage doesn't help. On November 21, $1 billion in long positions are liquidated within an hour. Institutional investors are seeing their gains melt away like melting snow. Result: bitcoin is flirting with $83,000, its lowest level since April.

Crypto: SOL and XRP shine while Bitcoin falters – towards a new order?

Despite this darkened picture, everything is not to be thrown away. In the storm, some cryptos are emerging. Solana (SOL) and XRP show net inflows to their respective ETFs: $300 million for one, $410 million for the other. Enough to fuel the idea of ​​the beginning of a change in the crypto hierarchy.

While BTC and ETH are falling, some crypto traders see this as a transfer of leadership. And small businesses are starting to adapt their strategies.

Faced with the volatility of Bitcoin ETFs, some SMEs and fintechs are opting for diversification via stablecoins, limiting their exposure to BTC, and experimenting with new crypto uses for payments and treasury.

What to remember this week:

• $83,168: bitcoin price at time of writing;
• $3.79 billion: total amount of withdrawals in November;
• $1 billion liquidated in 1 hour on November 21;
• Solana and XRP attract over $700 million in ETFs;
• 91% of exits concentrated on IBIT and FBTC.

While many give in to panic, some continue to believe it. Michael Saylor, eternal defender of bitcoin, does not blink. For him, this volatility is just background noise. His argument? Bitcoin remains a disruptive technology, and the shocks are only a necessary step in its march towards adoption. It is undoubtedly this unshakeable faith that leads him to minimize fluctuations and stay the course.