Bitcoin ETFs Suffer $1.2 Billion Loss in Record Weak Week

Bassyonni

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Bitcoin ETFs Suffer $1.2 Billion Loss in Record Weak Week

Bitcoin exchange-traded funds (ETFs) experienced a staggering loss of nearly $1.2 billion this week, marking a significant downturn amid tumultuous market conditions. The previous Friday saw an injection of $228 million, primarily driven by Fidelity’s fund, but it was overshadowed by massive outflows earlier in the week.

Record Outflows and Market Impact

On Thursday, Bitcoin ETFs reported more than $900 million in outflows, ranking as the second largest daily decline in their 22-month existence. Currently, the total outflows for November reached a historic high of $3.79 billion, equaling the previous all-time record set in February, according to reports by U.K. asset manager Farside Investors.

Bitcoin’s Price Decline

The drastic outflows come as Bitcoin’s value slid to its lowest point since April, hitting around $81,000 on Friday. This represents a decline of approximately 33% from its all-time peak of over $126,000 in early October. Factors contributing to this downturn include macroeconomic instability and decreasing expectations regarding U.S. interest rate cuts in 2025.

Major Players and Fund Performance

BlackRock’s iShares Bitcoin Trust (IBIT): Recorded over $1 billion in outflows this week.
Grayscale Bitcoin Trust (GBTC): Experienced $172 million in redemptions.
Fidelity Wise Origin Bitcoin Fund (FBTC): Saw $116 million in outflows but added $108 million in investments on Friday, outperforming rivals.

While FBTC rebounded, funds like the Grayscale Bitcoin Mini Trust ETF and GBTC added $61.5 million and $84.9 million, respectively, in assets during the same period.

Emerging Competitors

Additionally, recent launches of several altcoin ETFs, including those for Solana and XRP, have attracted investor interest. The Canary Capital XRP ETF (XRPC) generated an impressive $58 million on its first day, surpassing the Bitwise Solana Staking ETF (BSOL), which accumulated $57 million during its debut.

Outlook for Bitcoin and ETFs

Despite the significant challenges faced, industry experts remain optimistic about Bitcoin’s potential recovery. Bloomberg Senior ETF Analyst Eric Balchunas highlighted Bitcoin’s historical resilience, suggesting that it has survived numerous price drawdowns only to reach new heights eventually.

As regulatory scrutiny continues, with the U.S. Securities and Exchange Commission evaluating various applications for new crypto funds, the landscape is evolving. Investor appetite for digital asset products remains robust, signaling potential opportunities for recovery in the Bitcoin ETF market.