Spot Bitcoin ETFs experience $3.5 Billion earthquake, the biggest outflow in nine months!

Bitcoin (BTC) experienced consecutive sharp declines in October and November. While a recovery began in late November, it didn't last. Bitcoin, which rose above $91,000 with the recovery, entered December with a decline and fell to the $86,000 level. These sharp declines in Bitcoin also had a negative impact on US spot ETFs, with spot Bitcoin ETFs seeing a net outflow of $3.5 billion in November. These ETF outflows were the largest in the last 9 months. Spot Bitcoin ETFs experienced net outflows for four consecutive weeks, totaling $3.5 billion in outflows for the month, The Block reported. However, towards the end of the month, ETF funds experienced inflows for three consecutive days, partially offsetting the outflow trend. BlackRock's Bitcoin ETF IBIT fund led the outflows, recording net outflows of $2.34 billion in November. IBIT, notably, saw its largest single-day outflow since its inception on the 18th of last month, with an outflow of $523 million. Nick Ruck, Head of Research at LVRG, said the outflow was driven by institutions taking profits and rebalancing their portfolios for the year-end after Bitcoin reached a new record high. He added that this activity didn't impact Bitcoin's underlying fundamentals. Spot Ethereum (ETH) ETFs also recorded their highest-ever net outflow, with $1.42 billion in net outflows, according to the data. In contrast, newly launched altcoin ETFs like Solana (SOL) and XRP have continued to record net inflows since their launch. Nick Luck noted that while new altcoin ETFs like Solana are attracting steady capital flows despite high volatility, institutional capital remains concentrated in Bitcoin and Ethereum, indicating that this structure is likely to continue until regulatory clarity and on-chain stability are achieved. Continue Reading: Spot Bitcoin ETFs experience $3.5 Billion earthquake, the biggest outflow in nine months!