Record withdrawals on US Bitcoin ETFs: $3.79B vanished in November

October, nicknamed “Uptober” by crypto market enthusiasts, played a bad trick on investors. And here comes November with its even sharper blade. Bitcoin falls, ETFs are emptied like glasses after drunkenness, and the collective euphoria has given way to an icy silence. While some see it as just a slump, others fear a real tipping point. One thing is certain: the market is bleeding, and the numbers are no mere passing scratch.

Bitcoin emptied by Wall Street: $3.79B gone, IBIT and FBTC lead

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

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

In a viral tweet, Ki Young Ju, CEO of CryptoQuant, warns:

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

This hemorrhage is explained by a fragile macroeconomic climate, combined with growing disillusionment about the short-term interest of these financial products backed by a shaky Bitcoin.

Liquidations, DAT, and alarmist tweets: signals of a brutal crypto purge

ETFs are not the only ones reeling. The wind also blows on Digital Asset Treasuries (DAT), instruments held by crypto companies and funds. In October, inflows dropped 82%, falling from $10.89 billion to just $1.93 billion. November could be even worse: barely $505 million recorded 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, that knows nothing about cryptos, buying DATs and ETFs. It never ends well. Maybe a new 50% correction is needed for these people to liquidate their positions before the market can build solid foundations and restart the supercycle.

And he drives the point home: a 50% drawdown might be necessary to regain a solid foundation.

Leverage does not help. On November 21, $1 billion of long positions were liquidated in one hour. Institutional investors saw their gains melt like snow in spring. Result: Bitcoin flirted with $83,000, its lowest level since April.

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

Despite this dark picture, not all is lost. In the storm, some cryptos emerge. Solana (SOL) and XRP show net inflows on their respective ETFs: $300 million for one, $410 million for the other. Enough to feed the idea of a beginning change in the crypto hierarchy.

While BTC and ETH fall sharply, some crypto traders see this as a leadership transfer. And small companies are starting to adapt their strategies.

Faced with the volatility of Bitcoin ETFs, some SMEs and fintechs opt for diversification via stablecoins, limit their BTC exposure, and experiment with new crypto usages for payments and treasury.

What to remember this week:

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

While many give in to panic, some continue to believe. Michael Saylor, eternal defender of Bitcoin, does not flinch. For him, this volatility is just background noise. His argument? Bitcoin remains a disruptive technology, and the shocks are just a necessary passage in its march towards adoption. It is probably this unwavering faith that leads him to downplay fluctuations and stay the course.