Originally published on: November 26, 2024
Recent data shows that spot Bitcoin exchange-traded funds (ETFs) in the United States experienced significant outflows totaling $438.37 million on November 25. This outflow represents the largest single-day decline since the US election on November 6.
The substantial reversal in ETF flows comes after a period of substantial inflows earlier in November, with a record-breaking $1 billion in net inflows on November 21. However, the latest statistics suggest a shift in market sentiment regarding Bitcoin ETFs.
Despite the recent outflows, spot Bitcoin ETFs have still seen a net inflow of $30.4 billion as of November 25, fueled largely by institutional interest in cryptocurrencies like BTC.
These ETFs play a crucial role in facilitating institutional and retail investments in Bitcoin and other cryptocurrencies, influencing market liquidity and stability.
Following the US election results, Bitcoin’s price experienced a surge to nearly $99,655 on November 22. However, this price has since fallen to around $92,000 due to profit-taking activities resulting in a 7% drop.
While the total net assets under management for spot Bitcoin ETFs have decreased to approximately $102.23 billion from a peak of $107.49 billion on November 22, institutional holdings still comprise over 5% of the crypto market’s total capitalization.
Despite recent price fluctuations, US-based spot Bitcoin ETFs had a record-breaking week between November 18-22, with net inflows totaling $3.38 billion. This marked a 102% increase from the previous week’s net inflows of $1.67 billion and represented the largest weekly inflow for spot Bitcoin ETFs.
Although market dynamics may be volatile, BlackRock’s iShares Bitcoin Trust remains a top player with net assets of $47.03 billion and cumulative net inflows of $31.6 billion.
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