Market Crash: Record Bitcoin & Ethereum ETF Outflows

The crypto market is facing a defining crash in late November 2025, with record Bitcoin and Ethereum ETF outflows. Institutional flight has shattered the bullish narratives from earlier in the year. Bitcoin and Etherum erased significant value in a 24-hour window, driving market sentiment to its lowest point since mid-2023.

Bitcoin currently trades near $83,000, a stark 35% retracement from its October all-time highs, while Ethereum clings to support near $2,700.

Historic Bitcoin and Ethereum ETF Outflows

Institutional investors drove the sell-side pressure to historic levels this November. U.S.-listed spot Bitcoin ETFs registered a staggering $3.79 billion in collective outflows, shattering the previous record of $3.56 billion set in February 2025. Metrics confirm that institutional players are de-risking aggressively rather than buying the dip.

BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest Bitcoin fund, saw redemptions exceeding $2 billion in November alone. On Thursday, November 20, the 11 U.S. spot Bitcoin ETFs experienced a single-day withdrawal of over $900 million, the second-largest daily outflow since their January 2024 inception.

Ether ETFs fared no better, recording total outflows of $1.79 billion. These figures represent a clear vote of “no confidence” from traditional finance sectors regarding the short-term performance of the top two cryptocurrencies.

Bitcoin ETFs saw record-breaking net outflows in November. – Source: SoSoValue

Smart Money Rotates into Solana and XRP

Amidst the sea of red, a peculiar divergence emerged in the ETF sector. While investors fled Bitcoin and Ether, they actively allocated capital to alternative Layer-1 assets. Data shows that Solana and XRP ETFs bucked the macro trend during the same period. XRP ETFs attracted $410 million in net inflows, while Solana ETFs secured $300.46 million.

However, the broader altcoin market did not share this resilience. Tokens such as INJ, NEAR, ETHFI, APT, and SUI plummeted between 16% and 18% in 24 hours. The contrast highlights that regulated institutional products for SOL and XRP are seeing demand, while on-chain spot markets for other altcoins are suffering from the liquidity drought.

This liquidity crunch correlates with broader macroeconomic weakness. The Nasdaq 100 currently trades 9.4% below its October 31 record, signaling that risk-off sentiment pervades both traditional equities and digital assets.

Derivatives Data Reveals Extreme Fear

The derivatives market currently paints a picture of panic and defensive hedging. The “Fear and Greed Index” flashed a score of 11/100 on Friday, indicating “Extreme Fear”, which is the lowest reading since June 2023. Traders are scrambling to protect downside risk.

Volatility indices surged, with Bitcoin’s 30-day implied volatility (BVIV) topping 64% and Ether’s jumping to 87%, the highest since April. Bitcoin’s spike in volatility drove the cost of options premiums higher. Order flow on Deribit shows a heavy bias toward put options (bets that prices will fall). In a sign of extreme pessimism, some traders even purchased deep out-of-the-money puts on BlackRock’s IBIT ETF with a strike price of just $15.

Furthermore, bullish speculators faced a total wipeout. Bitcoin Open Interest (OI) crashed from 752,000 BTC to 700,000 BTC in a single day as exchanges liquidated over-leveraged long positions. While the Relative Strength Index (RSI) indicates the market is technically “oversold,” the massive reduction in open interest suggests that the market has reset, and few traders are willing to “catch the falling knife” in the immediate term.

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