Spot Bitcoin exchange-traded funds recorded one of their toughest weeks on record, losing nearly $1.2 billion in assets, the third-largest weekly outflow since the products launched 22 months ago.
Key Takeaways:
- Bitcoin ETFs saw nearly $1.2 billion in weekly outflows, marking their third-largest withdrawal event since launch.
- Despite a steep six-week price drop, several funds reversed course on Friday with strong inflows led by Fidelity’s FBTC.
- Analysts like Eric Balchunas stress Bitcoin’s resilience, noting it has rebounded from even deeper drawdowns to reach new highs.
The heavy withdrawals persisted even as markets staged a partial recovery on Friday.
Data from Farside Investors shows that November’s outflows hit $3.79 billion by Thursday, matching the previous monthly record set in February.
Bitcoin ETFs Log Second-Biggest Daily Outflow at $900M
The pressure continued into Friday, despite a brief rebound across risk assets. Thursday alone saw more than $900 million in redemptions, marking the second-largest single-day exit for the category.
The sharp moves come during a six-week slide in Bitcoin’s price, which briefly touched $81,000 early Friday, its lowest level since April.
Bitcoin has now fallen roughly 33% from its October peak above $126,000, dragged down by shifting macro expectations, including fading hopes for a third Federal Reserve rate cut in 2025, and renewed anxiety over stretched valuations in the artificial intelligence sector.
The largest hit came from BlackRock’s iShares Bitcoin Trust (IBIT), which saw more than $1 billion withdrawn over the week.
Grayscale’s GBTC and Fidelity’s FBTC followed with outflows of $172 million and $116 million, respectively.
But Friday brought a change in tone. Fidelity’s FBTC added $108 million in fresh capital, the strongest daily inflow among the group.
Grayscale’s Bitcoin Mini Trust (BTC) and GBTC also bounced back, posting $61.5 million and $84.9 million in inflows.
Despite the downturn, some analysts remain unfazed. Bloomberg’s Eric Balchunas, commenting on X, pushed back against pessimistic predictions, noting Bitcoin’s long history of recovering from deep corrections.
“This asset has survived half a dozen drawdowns worse than this, only to hit new highs every time,” he wrote, comparing Bitcoin’s durability to top-performing stocks like Apple and Amazon. In a separate post, he joked that Bitcoin “should definitely be treated as hot sauce.”
New Altcoin ETFs Steal Spotlight as Bitcoin Funds Struggle
The turbulence in Bitcoin funds coincides with the rollout of a wave of new altcoin ETFs.
Over the past month, issuers have launched products tied to Solana, XRP, and Dogecoin, with more XRP and Dogecoin funds set to list next week.
The Canary Capital XRP ETF (XRPC) debuted with $58 million in net inflows, the highest opening-day haul for any ETF this year, edging out the Bitwise Solana Staking ETF (BSOL), which launched with $57 million.
BSOL has quickly become one of the early success stories of 2025, accumulating over $660 million in assets within three weeks and avoiding a single day of outflows.
As reported, the New York Stock Exchange has approved the listing of Grayscale’s XRP and Dogecoin exchange-traded funds, clearing both products to begin trading on Monday.
NYSE Arca, the exchange’s ETF-focused subsidiary, filed certifications on Friday confirming the listing and registration of the Grayscale XRP Trust ETF Shares and the Grayscale Dogecoin Trust ETF Shares under the Securities Exchange Act of 1934.
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