U.S. spot Bitcoin and Ethereum exchange-traded funds shed a combined $538.3 million in net assets on Nov. 2, with BlackRock's flagship crypto products accounting for nearly all of the damage, according to flow data compiled by Farside Investors.
Bitcoin funds gave back $398.6 million on the session, while Ethereum vehicles lost $139.7 million. The redemptions extended a selloff that began the prior trading day and arrived despite modest inflows into Fidelity's and Morgan Stanley's competing products, underscoring how concentrated the withdrawal pressure has become around the industry's largest issuer.
BlackRock's iShares Bitcoin Trust (IBIT), the biggest spot Bitcoin fund by assets, bled $405.3 million. That single figure exceeded the entire net decline for the U.S. spot Bitcoin category, because Fidelity's Wise Origin Bitcoin Fund (FBTC) pulled in roughly $6.7 million and the other tracked funds ended the day flat. IBIT's cumulative net inflows since launch stand at about $65.905 billion, while FBTC's total sits near $10.18 billion.
The Ethereum side told a similar story. BlackRock's iShares Ethereum Trust (ETHA) lost about $138.3 million, and its Ethereum Staking ETF (ETHB) surrendered another $4.6 million. Morgan Stanley's Ethereum Trust (MSSE) drew roughly $3.2 million in net inflows, trimming the category's overall loss. Because FBTC and MSSE both finished positive, the two BlackRock funds together shed more than the market's total net outflow.
Note: Figures are from Farside Investors data for the Nov. 2 U.S. trading session. Positive values denote net inflows; negative values denote net outflows.
The two-day stretch has now drained roughly $1.04 billion from Bitcoin ETFs alone. Oct. 30 saw $643.2 million leave the category, with BlackRock and Fidelity contributing $233.7 million and $201 million respectively and ARK 21Shares' ARKB losing $129.5 million. Those withdrawals wiped out gains booked during four straight sessions of net inflows through Oct. 29, when Bitcoin funds attracted $176 million on Oct. 27 and $137.3 million the next day.
Ethereum products have been leaking capital even longer. The category has now posted six consecutive sessions of net outflows, including $105.5 million on Oct. 29 and $155.7 million on Oct. 30, with ETHA responsible for much of the selling throughout. Fidelity's Ethereum fund recorded no net movement on Nov. 2.
The crypto retreat stands in contrast to feverish demand for leveraged equity products. Roughly $15 billion flowed into leveraged U.S. equity ETFs over the preceding month, the largest rolling monthly total in at least two years, according to an analysis circulated by The Kobeissi Letter. That marked a reversal from about $2 billion in net withdrawals in early October. The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) alone took in $7.3 billion during October, its biggest monthly haul on record.
Morgan Stanley's quantitative and derivative strategies team, meanwhile, estimated that retail investors sold about $1.4 billion of U.S. equities on Nov. 2, only the second day of net retail selling in 2026 following more than $1 trillion in cumulative purchases of stocks and ETFs this year. The mixed signals complicate any simple read on risk appetite: leveraged equity funds are drawing heavy inflows even as retail investors lighten up on stocks, and the two fund categories do not appear to be connected by a direct rotation.
For crypto ETFs, the immediate problem is concentration. Fresh allocations to Fidelity and Morgan Stanley products are being swamped by redemptions from BlackRock's vehicles, a pattern that suggests institutional allocators are trimming exposure to the largest, most liquid funds rather than abandoning the asset class outright. ETF flows reflect portfolio rebalancing as well as directional bets, and spot prices also hinge on derivatives positioning, market liquidity and macroeconomic conditions.
Still, the scale of the exit is hard to dismiss. Six straight days of Ethereum outflows and a billion-dollar-plus two-day hole in Bitcoin funds point to a measurable pullback in institutional appetite for regulated crypto exposure. Whether the coming sessions bring stabilization or a third leg lower will depend on whether the largest issuers keep bleeding.
