Spot bitcoin exchange-traded funds (ETFs) posted net outflows of $1.28 billion last week, marking the biggest weekly fund withdrawal since late June.
Cointelegraph, a blockchain media outlet, reported on Nov. 9 that the outflows were concentrated in BlackRock's iShares Bitcoin Trust (IBIT).
IBIT recorded net outflows for six straight sessions since Oct. 30. Cumulative outflows over that period were estimated at about $1.44 billion. About 95 percent of last week's total net outflows from spot bitcoin ETFs came from IBIT.
Fidelity's Wise Origin Bitcoin Fund (FBTC) recorded weekly net inflows of about $93 million. Still, FBTC alone saw about $200 million pulled out in a single day last Thursday.
The year-to-date trend is also weak. SoSoValue data showed spot bitcoin ETFs have logged cumulative net outflows of about $919 million this year. These products had already posted net outflows of $515 million in October.
The market is watching macro and policy factors together. Bitfire Research said shifts in U.S. interest rate expectations, post-midterm election uncertainty and weakness in tech stocks weighed on the crypto market. It also noted investors are reassessing whether Congress can pass the Clarity Act before year-end.
On-chain and trading indicators also showed worsening sentiment. Bitfire Research said the crypto fear and greed index pointed to 25 and the Coinbase premium also turned negative. That means bitcoin traded at a discount on Coinbase versus a reference benchmark.
Caution also persisted over the short-term market phase. Bitfire Research said the market is in a stage of seeking a bottom after a breakdown, and it saw the potential for further selling if bitcoin stays below the $74,400 to $75,000 support zone. It then pointed to U.S. inflation data and Federal Reserve signals as key variables.
Against this backdrop, ETF outflows are being read as more than a simple price correction. Selling pressure was concentrated in the large IBIT product, while interest rate outlooks, policy uncertainty and stock market weakness overlapped at the same time, rapidly squeezing bitcoin investment sentiment. U.S. inflation data, signals from the Fed and whether Congress processes legislation remain variables that could determine spot ETF flows and whether bitcoin prices rebound.
