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Bitcoin Updates: Bitcoin ETF Withdrawals Indicate a Maturing Crypto Market as Investors Move Toward Altcoins

Bitcoin Updates: Bitcoin ETF Withdrawals Indicate a Maturing Crypto Market as Investors Move Toward Altcoins

Bitget-RWA2025/11/19 09:08
By:Bitget-RWA

- BlackRock's IBIT recorded $523M outflow on Nov 18, its largest since launch, as Bitcoin dropped below $90K. - Institutional investors rebalance Bitcoin holdings amid Fed uncertainty and government shutdown risks. - Ethereum ETFs face redemptions, while altcoin ETFs like Solana see sustained inflows. - Analysts remain cautiously optimistic, viewing short-term selling as temporary.

BlackRock's

(IBIT) experienced its largest daily withdrawal since launching in January 2024, as $523.15 million exited the fund on November 18, breaking the previous record of $463 million set just five days before . This marks the fifth straight day of outflows for the world’s biggest spot ETF, which currently manages $72.76 billion in net assets . The withdrawals coincided with Bitcoin’s price dropping below $90,000—a level not seen in seven months—and a broader selloff in crypto ETFs, as all 11 U.S. spot Bitcoin ETFs together saw $2.59 billion withdrawn this month .

This turbulence highlights increasing caution among institutional investors amid macroeconomic uncertainty, such as ambiguity around the Federal Reserve’s December rate decision and the ongoing U.S. government shutdown

. The price of bearish options, which investors use to guard against further declines, also climbed to a seven-month peak of 3.1% as measured by the 250-day put-call skew . Analysts point to a mix of profit-taking after Bitcoin’s earlier surge and a shift in risk tolerance as reasons for the outflows. Vincent Liu, CIO at Kronos Research, commented that institutions are “adjusting their allocations rather than fully exiting Bitcoin,” reducing their positions while waiting for clearer economic signals .

Withdrawals picked up further on November 19, when

clients sold another $513.47 million in BTC through , bringing the fund’s total outflows for the month to $1.26 billion . Blockchain data showed significant Bitcoin transfers from IBIT wallets to Coinbase Prime, a typical route for institutional sales . At the same time, ETFs followed suit, with BlackRock’s ETHA seeing $165 million withdrawn in a single day .
Bitcoin Updates: Bitcoin ETF Withdrawals Indicate a Maturing Crypto Market as Investors Move Toward Altcoins image 0
The selloff spread to broader markets as well, with the SPDR S&P 500 Trust (SPY) experiencing $1.71 billion in outflows for the week ending November 14, and six out of 11 S&P 500 sector ETFs also seeing redemptions .

Yet, not every crypto ETF was affected. Spot

ETFs continued their streak of inflows for a 16th consecutive day, collecting $420 million in net new investments, while newcomers like Fidelity’s FSOL and Canary Capital’s SOLC launched with modest positive flows . Analysts such as Nick Ruck from LVRG Research suggest that this move toward altcoins points to a maturing market, with investors seeking yield-generating assets as risk appetite grows .

The recent volatility has pushed Bitcoin’s year-to-date returns into negative territory, fueling worries about a deeper downturn. Still, some experts remain cautiously hopeful. Liu stressed that short-term selling doesn’t undermine the long-term institutional case for Bitcoin, especially since liquidity could return if the government reopens and the Fed’s stance becomes clearer

. For now, markets remain tense, uncertain whether these outflows are simply a temporary adjustment or the beginning of a more prolonged bearish phase.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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