BlackRock and Grayscale lead major ETF withdrawals topping $900m

Bitcoin ETFs see $903M net outflow, price nosedives as Blackrock and Grayscale see major outflows.

Summary

• U.S. Bitcoin ETFs saw $903M net outflows on Nov. 20, the second-highest since early 2024, dragging Ethereum ETFs after eight straight days of losses.
• BlackRock and Grayscale recorded the largest withdrawals as institutional investors took profits ahead of year-end, citing a risk-off shift.
• Experts say volatility remains high, with large holders buying the dip while short-term traders face challenging recovery timing.

U.S. Bitcoin spot exchange-traded funds recorded net outflows of $903 million on November 20, marking the second-largest outflows since the funds’ inception in January 2024, according to market data.

Ethereum spot ETFs recorded net outflows of $262 million, extending a streak of eight consecutive days of net outflows, according to data from SoSoValue.

BlackRock iShares Bitcoin Trust suffer large exodus

BlackRock’s iShares Bitcoin Trust experienced the largest outflows as of November 20, followed by Grayscale’s fund, which also recorded significant net outflows on Thursday, data showed.

The outflows occurred as Bitcoin declined sharply over a 24-hour period amid institutional exits, miner economics pressures, and technical market triggers, according to market observers.

https://sosovalue.com/assets/etf/us-btc-spot

Crypto exchange Luno stated in its market insights that ETF outflows indicate “risk-off positioning,” with large investors securing profits ahead of year-end.

“Institutional investors are leading the charge, with ETF outflows signalling profit-taking and risk-off positioning,” Rachael Lucas, crypto analyst at BTC Markets, told crypto media.

Przemysław Kral, CEO of European crypto exchange zondacrypto, told newsoutlets that long-term investors have an opportunity to accumulate tokens at lower prices, while short-term traders may face challenges in timing a market recovery.

“Significant outflows from Bitcoin (BTC) ETFs indicate that institutional players are taking profits off the table,” Kral stated.

Kral noted the potential for further Bitcoin price declines but added that large Bitcoin holders continue to purchase the cryptocurrency. “This is a sign of underlying strength and confidence in the project, even though the price is falling,” Kral stated. “For some, this could be a chance to enter the market at a lower price than we’ve seen recently. Therefore, it is important to recognise the risks. Volatility is high, and the macro environment can change quickly.”