Over the past two years, the performance of U.S. Bitcoin ETFs has accurately mirrored market sentiment. With several consecutive weeks of capital outflows, the bearish trend is unmistakable. This negative mood is further highlighted by Bitcoin’s drop below the key $100,000 mark. While selling by various types of investors has contributed to Bitcoin’s price decline, the poor performance of Bitcoin ETFs is also a significant factor.
According to recent data, U.S. Bitcoin ETFs saw a net outflow of over $492.1 million on Friday, November 14, marking the third straight day of withdrawals for crypto-related investment products.
The largest outflow came from BlackRock’s iShares Bitcoin Trust (IBIT), the biggest Bitcoin ETF by assets, with $463.1 million withdrawn on Friday. Grayscale Bitcoin Trust (GBTC) followed with $25.09 million in outflows. Fidelity Wise Origin Bitcoin Fund (FBTC) and WisdomTree Bitcoin Trust (BTCW) also ended the week with outflows of $2.06 million and $6.03 million, respectively. The only Bitcoin ETF to see an inflow was Grayscale’s Bitcoin Mini Trust (BTC), which added $4.17 million.
On Thursday, September 13, Bitcoin ETFs recorded their second-worst daily performance, with total net outflows of $869.86 million. Friday’s $492 million outflow pushed the weekly total to over $1.11 billion in net withdrawals.
As expected, the weak performance of Bitcoin ETFs has coincided with Bitcoin’s fall below $100,000. Since their launch in 2024, Bitcoin’s price has generally moved in line with these ETFs. Currently, Bitcoin is trading around $95,500, showing modest gains in the last 24 hours. Over the past week, its price has dropped nearly 7%, according to CoinGecko.
While selling pressure from investors continues to weigh on Bitcoin, a resurgence in demand for Bitcoin ETFs could help spark a recovery.
Frequently Asked Questions
Of course Here is a list of helpful FAQs about the recent US Bitcoin ETF withdrawals designed for both beginners and more experienced investors
Beginner Definition Questions
1 What is a Bitcoin ETF
A Bitcoin ETF is an investment fund traded on traditional stock exchanges that holds Bitcoin It allows you to gain exposure to Bitcoins price without having to buy and store the cryptocurrency yourself
2 What does withdrawals mean in this context
It means investors are selling their shares of the Bitcoin ETF When this happens on a large scale the ETF company must sell some of its actual Bitcoin to pay these investors leading to a net outflow of money from the fund
3 Why is Bitcoins price mentioned Is it over 100000
No the headline is highlighting that Bitcoins price has not reached the 100000 mark that many investors were hoping for The price has remained below this psychological barrier which is one reason for the recent selling pressure
Questions About the Current Situation
4 Why are people withdrawing money from Bitcoin ETFs now
There are a few key reasons
ProfitTaking Some investors bought in early and are now cashing out their gains
Disappointment The price of Bitcoin has stalled below 100000 causing some to lose patience
Market Uncertainty Broader economic factors can make risky assets like Bitcoin less attractive
5 Is 11 billion a lot of money for these ETFs
While it sounds like a huge number its important for context The top US Bitcoin ETFs collectively hold over 50 billion A 11 billion withdrawal is significant and indicates a strong wave of selling but it is a small percentage of the total assets
6 Should I be worried about my own Bitcoin ETF investment
Not necessarily Market fluctuations and periods of net withdrawals are normal for any investment fund It becomes a concern only if it turns into a sustained longterm trend This event highlights the volatility of Bitcoinrelated assets
Advanced Strategic Questions
7 How do ETF withdrawals directly affect the price of Bitcoin
When an ETF experiences large withdrawals the fund manager is forced to sell Bitcoin from its reserves on the open market to raise cash This increased selling pressure can push the price of Bitcoin down