Bitcoin ETFs Lose $430 Million as BTC Price Crashes 5%

Key takeaways

• US spot Bitcoin ETFs recorded $430.2 million in net outflows on Nov. 5
• BTC plunged approximately 5.3%, briefly approaching $75,000
• Bitcoin ETFs lost approximately $869.8 million during November's first four trading sessions

US-listed spot Bitcoin exchange-traded funds (ETFs) recorded another difficult trading session on Thursday with $430.2 million in net outflows, according to ETF flow data. The latest withdrawals reversed Wednesday's modest recovery.

Bitcoin ETF flows (Source: Farside Investors)

The new selling pressure came after Bitcoin ETFs attracted $74.6 million on Nov. 4, which raises concerns about whether institutional demand can really provide meaningful support for Bitcoin's price.

BlackRock and Fidelity Lead Bitcoin ETF Withdrawals

BlackRock's iShares Bitcoin Trust (IBIT) recorded the largest withdrawals on Nov. 5, and lost $105 million. Fidelity's Wise Origin Bitcoin Fund (FBTC) followed closely with $99.9 million in outflows. The ARK 21Shares Bitcoin ETF (ARKB) also experienced substantial withdrawals of $89.9 million, while Grayscale's Bitcoin Trust (GBTC) lost another $49.9 million.

Other funds facing selling pressure included Grayscale's Bitcoin Mini Trust, which recorded $32.9 million in outflows, and VanEck's Bitcoin ETF (HODL), which lost $23.6 million.

None of the funds listed recorded positive net inflows during Thursday's session.

Bitcoin ETFs Struggle to Regain Momentum

The latest withdrawals extended a volatile period for Bitcoin investment products. On Nov. 2, spot Bitcoin ETFs experienced $398.6 million in outflows, followed by another $115.6 million on Nov. 3. Although Nov. 4 brought a brief recovery, Thursday's withdrawals quickly erased those gains.

Across the first four trading sessions of November, the funds recorded approximately $869.8 million in cumulative net outflows.

Overall, the sustained withdrawals suggest that institutional investors are still cautious about increasing their Bitcoin exposure.

Bitcoin Price Plunges Toward $75,000

Bitcoin's price action reflected the dip in market sentiment. In fact, BTC fell approximately 5.3% over the past 24 hours of trading.

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The cryptocurrency opened the day close to $80,444 before dropping to an intraday low of approximately $75,035. By early Nov. 6, BTC was trading around $75,500, which indicates that selling pressure remained elevated after Thursday's sharp decline.

The decline in Bitcoin's price and ETF flows show that there is weakening demand across both traditional investment products and the crypto market. Just keep in mind that ETF withdrawals alone do not establish what caused the price decline.