Crypto ETF Outflows Top $540M on Thursday - Bitcoin Foundation

The outflows occurred as Bitcoin traded at $75,801 as of 18:49 UTC on November 6, down 0.42% over 24 hours according to CoinGecko. The reported ETF withdrawals specifically cover Thursday's fund flows, which represent a significant reversal after a brief reprieve earlier in the week.

Major Bitcoin Funds See Withdrawals

Fidelity's Wise Origin Bitcoin Fund (FBTC) recorded the largest withdrawal at $199.9 million, while BlackRock's iShares Bitcoin Trust (IBIT) lost $105 million. Together, these two funds accounted for approximately 71% of Thursday's Bitcoin ETF outflows. Grayscale's GBTC and Franklin Templeton's EZBC also saw significant redemptions of $49.9 million and $32.9 million respectively.

The concentration of withdrawals in the two largest funds highlights how Thursday's Bitcoin outflows were not evenly distributed across all products. However, the available breakdown doesn't identify which investors redeemed shares or their motivations.

Market Context and Timing

Thursday's outflows coincided with a broader market selloff, as the Nasdaq Composite fell 5.5% and the S&P 500 dropped approximately 4.4%. Chipmakers and data-center stocks led the declines amid investor concerns about artificial intelligence spending and potential post-election restrictions.

Bitcoin gave back its post-election rebound, falling toward $76,000 after trading above $80,000 on Wednesday. The reversal was partly fueled by short liquidations that had contributed to the earlier price rise, creating more difficult conditions for leveraged traders.

Weekly Flow Picture

Despite Thursday's significant outflows, Wednesday had seen a $74.6 million net inflow to U.S. spot Bitcoin ETFs. This positive day followed a $643.2 million outflow the previous Friday, making Thursday's withdrawals a sharp return to negative daily flows.

Through Thursday, the week's total Bitcoin ETF net outflow stood at $869.8 million, putting the single-day reversal in context of several days of fund redemptions. BlackRock's IBIT extended a five-session withdrawal streak that began October 30 and reached roughly $1.04 billion through Thursday.

Understanding ETF Flows

ETF net flows count fund-share creations minus redemptions, capturing activity at the fund level rather than all secondary-market trades. The figures show that brokerage-based Bitcoin exposure can be reduced through ETF shares during market downturns, but don't reveal the motivations behind redemptions.

The absence of positive daily flows in Bitcoin ETFs means net figures were either negative or unchanged for the listed funds, but doesn't establish that no buying occurred. Gross buying and selling can happen simultaneously, with the net outcome reflecting the balance for each fund.