Key Takeaways
What happened on November 18?
Bitcoin ETFs saw net outflows of $372.8 million, led by BlackRock’s IBIT with $523.2 million in withdrawals.
Have all Bitcoin ETFs seen outflows?
No, Grayscale and Franklin Templeton recorded inflows, while others remained flat.
Global crypto investment products are facing a sharp decline as rising macroeconomic uncertainty shakes investor confidence.
Exchange-traded products saw a massive wave of outflows, with withdrawals exceeding $2 billion worldwide.
Bitcoin ETF Outflow Analysis
According to facts from Farside Investors, search Bitcoin [BTC] ETFs have been the hardest hit, showing continued outflows since November 12, signaling a shift in market sentiment as volatility begins to rise.
On November 18, Bitcoin ETFs extended their losing streak, posting net outflows of $372.8 million.
BlackRock’s IBIT led the downturn with $523.2 million in withdrawals, making it the only product with negative flows on the day.
In contrast, other major issuers posted modest inflows.
Grayscale’s BTC added $139.6 million, while Franklin Templeton’s EZBC saw $10.8 million.
According to Farside Investors, the remaining issuers recorded flat, zero flows.
What is Bitcoin’s Price Action Signaling?
These market moves came as Bitcoin fell below the $90,000 mark, reflecting broader risk aversion.
However, the assets showed the first signs of recovery at the time of writing, trading at $91,796.18, up 0.82% in 24 hours, per CoinMarketCap.
However, despite the slight recovery, sentiment remains cautious.
Bitcoin’s RSI remained below the neutral line and continued to decline, indicating bearish momentum.
Meanwhile, price volatility spiked, signaling unstable price action and highlighting that bulls could struggle to regain control in the short term.
Source: Santiment
A recent one report by 21Shares noted that Bitcoin’s decline below $100,000, now 27% above its peak, signals a short-term correction rather than an outright bear market.
The decline has been driven by several factors: the institutional phasing out of basic trades, falling returns, long-term holders losing around 42,000 BTC, and continued ETF outflows.
Broader macroeconomic pressures, including delayed rate cuts and weakness in technology markets, have added to the tension.
Despite this pullback, the report emphasizes that Bitcoin’s fundamentals remain strong.
Selling pressure is easing, liquidity is improving post-shutdown and long-term demand is growing, fueled by institutional interest and expected regulatory clarity.
The key technical levels to watch are resistance at $98K-$100K and support at $85K. If Bitcoin can hold the $85,000 – $90,000 range and reclaim $98,000 – $102,000, a move towards $110,000+ is likely.
However, a break below $85,000 could lead to extensive consolidation in the $75,000-$80,000 zone.
Overall, the current move appears to be a healthy reset, not a trend reversal.
Arthur Hayes weighs in
If you look closely, most of the ETF outflows, especially from BlackRock, appear to be tied to institutional trading strategies rather than retail panic selling.
BitMEX founder Arthur Hayes noted that hedge funds, including companies like Goldman Sachs, caused the withdrawals.
These funds previously used Bitcoin ETFs to execute basic trades, a strategy in which traders buy spot ETF positions while shorting Bitcoin Futures on CME to profit from the spread.
When returns were high, trading was lucrative, with returns of around 14% in October.
As spreads narrowed to below 5%, the trade lost its appeal, forcing hedge funds to unwind their positions.
According to Hayes, this wave of liquidations led to an outflow of institutional investors, which in turn unsettled retail investors, amplifying the general wave of withdrawals.
Other ETF Analysis
While Bitcoin ETFs bore the brunt of the recent market pullback, the trend has not been uniform across all assets.
At the time of writing: Spot Ethereum [ETH] Saw ETFs outflow of $74.2 million, reflecting broader caution towards major crypto assets.
Investor sentiment towards alternative assets remained more positive, with Spot Solana [SOL] ETFs drawing $26.2 million in inflows during the same period.
These mixed flows indicate that investors are not abandoning digital assets entirely; they are reallocating capital, reassessing risks and exploring opportunities beyond the dominant market leaders amid rising volatility.