Key takeaways
What happened on the 18th of November?
Bitcoin ETFs saw $372.8 million in net outflows, led by BlackRock’s IBIT with $523.2 million in withdrawals.
Did all Bitcoin ETFs see outflows?
No, Grayscale and Franklin Templeton recorded inflows, while others remained flat.
Global crypto investment products are facing a sharp pullback as rising macroeconomic uncertainty shakes investor confidence.
Exchange-traded products saw a massive wave of outflows, with withdrawals crossing $2 billion worldwide.
Bitcoin ETF outflow analysis
According to data from Farside Investors, spot Bitcoin [BTC] ETFs have been hit the hardest, recording continuous outflows since the 12th of November, signaling a shift in market sentiment just as volatility begins to climb.
On the 18th of November, Bitcoin ETFs extended their losing streak, posting $372.8 million in net outflows.
BlackRock’s IBIT led the downturn with $523.2 million in withdrawals, making it the only product with negative flows on that day.
In contrast, other major issuers recorded modest inflows.
Grayscale’s BTC added $139.6 million, while Franklin Templeton’s EZBC saw $10.8 million.
The remaining issuers recorded flat, zero flows, according to Farside Investors.
What is Bitcoin’s price action signaling?
These market moves came as Bitcoin slipped below the $90,000 mark, reflecting broader risk aversion.
However, the asset showed early signs of recovery at press time, trading at $91,796.18, up 0.82% in 24 hours, per CoinMarketCap.
Yet, despite the slight bounce, sentiment remains cautious.
Bitcoin’s RSI stayed below the neutral line and continued trending downward, suggesting bearish momentum.
Meanwhile, price volatility spiked, signaling unstable price action and highlighting that bulls may struggle to regain control in the short term.
Source: Santiment
A recent report by 21Shares noted that Bitcoin’s drop below $100K, now 27% off its peak, signals a short-term correction rather than a full-blown bear market.
The decline has been driven by several factors: institutional unwinding of basis trades, falling yields, long-term holders offloading around 42,000 BTC, and continued ETF outflows.
Broader macroeconomic pressures, including delayed interest rate cuts and weakness in tech markets, have added to the strain.
Despite this pullback, the report emphasizes that Bitcoin’s fundamentals remain strong.
Selling pressure is easing, liquidity is improving post-shutdown, and long-term demand is growing, fueled by institutional interest and anticipated regulatory clarity.
Key technical levels to watch are resistance at $98K–$100K and support at $85K. If Bitcoin can hold the $85K–$90K range and reclaim $98K–$102K, a move toward $110K+ is likely.
However, a break below $85K could lead to extended consolidation in the $75K–$80K zone.
Overall, the current move appears to be a healthy reset, not a trend reversal.
Arthur Hayes weighs in
If looked carefully, the largest chunk of ETF outflows, particularly from BlackRock, appears to be tied to institutional trading strategies rather than retail panic selling.
BitMEX founder Arthur Hayes noted that hedge funds, including firms like Goldman Sachs, were driving the withdrawals.
These funds previously used Bitcoin ETFs to execute basis trades, a strategy where traders buy spot ETF positions while shorting Bitcoin Futures on CME to profit from the spread.
When yields were high, the trade was lucrative, offering returns of around 14% in October.
As spreads narrowed to below 5%, the trade lost its appeal, leading hedge funds to unwind their positions.
According to Hayes, this wave of liquidations sparked institutional outflows, which in turn unsettled retail investors, intensifying the overall wave of withdrawals.
Other ETF analysis
Now, while Bitcoin ETFs bore the brunt of the recent market pullback, the trend wasn’t uniform across all assets.
At press time, Spot Ethereum [ETH] ETFs saw outflows of $74.2 million, reflecting broader caution toward major crypto assets.
Investor sentiment toward alternative assets remained more positive, with Spot Solana [SOL] ETFs drawing $26.2 million in inflows during the same period.
These mixed flows indicate that investors aren’t exiting digital assets altogether; they’re reallocating capital, reassessing risk, and exploring opportunities beyond dominant market leaders amid rising volatility.
