Originally published on: November 26, 2024
Recent data shows that spot Bitcoin exchange-traded funds (ETFs) based in the United States witnessed a significant outflow of $438.37 million on November 25, marking the largest single-day decline since the US election on November 6.
This sudden reversal comes after a period of strong inflows earlier in November, where a record-breaking $1 billion in daily net inflows was reported on November 21 by crypto tracking platform Sosovalue. These latest statistics highlight a shift in market sentiment regarding Bitcoin ETFs.
Despite this one-day outflow, the data reveals that spot Bitcoin ETFs have accumulated a net inflow of $30.4 billion as of November 25, primarily driven by institutional interest.
These ETFs play a crucial role in opening up the cryptocurrency market to both institutional and retail investors, impacting liquidity and stability within the market.
Following the recent outflow, there has been a noticeable change from the positive momentum experienced after the US election, where optimism surged within the crypto industry. The price of Bitcoin hit a high of around $99,655 on November 22 but has since dipped to approximately $92,000, representing a loss of over 7% due to profit-taking activities.
While there has been a decline in total net assets under management for spot Bitcoin ETFs, falling from $107.49 billion to $102.23 billion on November 22, the proportion of Bitcoin held by ETFs remains substantial, with institutions accounting for over 5% of the market’s capitalization.
Despite the recent pullback, BlackRock’s iShares Bitcoin Trust continues to lead the way with net assets totaling $47.03 billion and cumulative net inflows of $31.6 billion.
In the week of November 18-22, spot Bitcoin ETFs in the US experienced net inflows of $3.38 billion, marking a 102% increase from the previous week. This record high represents the largest weekly net inflow for spot Bitcoin ETFs and the seventh consecutive week of positive flows.
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