Bitcoin ETFs Experience Significant Weekly Outflow of $1.2 Billion Despite Friday's Recovery

Bitcoin ETFs Experience Significant Weekly Outflow of $1.2 Billion Despite Friday's Recovery

Spot Bitcoin exchange-traded funds (ETFs) faced one of their most challenging weeks on record, experiencing a total loss of nearly $1.2 billion in assets. This marked the third-largest weekly outflow since the launch of these products 22 months ago.

Key Takeaways:

Bitcoin ETFs recorded almost $1.2 billion in weekly outflows, marking it as the third-largest withdrawal since their inception.
Following a notable decline over six weeks, several funds, including Fidelity’s FBTC, saw a recovery on Friday with significant inflows.
Experts like Eric Balchunas highlight Bitcoin’s resilience, noting its ability to recover from deeper downturns in the past and attain new highs.

Heavy withdrawals were noted despite a partial recovery in the markets on Friday.

Data from Farside Investors indicates that outflows in November surged to $3.79 billion by Thursday, equaling the previous monthly record from February.

Bitcoin ETFs Face Major Daily Outflow of $900M

The challenges continued into Friday, even though there was a brief bounce back across risk assets. On Thursday alone, Bitcoin ETFs faced more than $900 million in redemptions, making it the second-largest single-day outflow for this asset category.

This volatility aligns with a six-week decline in Bitcoin’s price, which briefly fell to $81,000 on Friday, marking its lowest point since April.

Since reaching a peak above $126,000 in October, Bitcoin has plummeted approximately 33%. Factors like adjusting macroeconomic expectations and diminishing hopes for a third interest rate cut from the Federal Reserve in 2025, alongside growing concerns over inflated valuations in the AI sector, have been contributing to this decline.

The most substantial withdrawals came from BlackRock’s iShares Bitcoin Trust (IBIT), which saw over $1 billion pulled out over the week. Following behind were Grayscale’s GBTC and Fidelity’s FBTC, which experienced outflows of $172 million and $116 million, respectively.

However, Friday signaled a shift. Fidelity’s FBTC received $108 million in new investments, the highest daily inflow among Bitcoin ETFs. Additionally, Grayscale’s Bitcoin Mini Trust (BTC) and GBTC also rebounded, attracting inflows of $61.5 million and $84.9 million, respectively.

Despite the downturn, some market analysts remain optimistic. Bloomberg’s Eric Balchunas took to social media to contest negative forecasts, emphasizing Bitcoin’s historical ability to recover from substantial corrections.

“This asset has weathered more severe drawdowns than this, only to achieve new highs time and again,” he commented, likening Bitcoin's resilience to that of major stocks like Apple and Amazon. In a lighthearted post, he remarked that Bitcoin “should definitely be treated as hot sauce.”

New Altcoin ETFs Capture Attention Amid Bitcoin Fund Struggles

The turbulent period in Bitcoin funds coincides with a trend of launching new altcoin ETFs. In recent weeks, issuers have introduced products tied to Solana, XRP, and Dogecoin, with additional XRP and Dogecoin funds scheduled to launch next week.

The Canary Capital XRP ETF (XRPC) made a successful debut with $58 million in net inflows, marking the highest opening day for any ETF this year and surpassing the Bitwise Solana Staking ETF (BSOL), which started with $57 million.

The BSOL has rapidly become one of the success stories of 2025, amassing over $660 million in assets within just three weeks without experiencing a single day of outflows.

Reports indicate that the New York Stock Exchange (NYSE) has approved the listing of Grayscale’s XRP and Dogecoin ETFs, allowing for trading to commence on Monday.

NYSE Arca, which is the exchange’s ETF-focused subsidiary, submitted certifications confirming the listing and registration of the Grayscale XRP Trust ETF Shares and the Grayscale Dogecoin Trust ETF Shares under the Securities Exchange Act of 1934.