Bitcoin ETFs See $1.4B Outflow in Five Days Amid Risk Aversion

Bitcoin ETFs See Five Days of Outflows as Investors Retreat

U.S. spot Bitcoin exchange-traded funds have experienced five consecutive days of net outflows, as investors pull back from risk assets following a volatile week in the markets.

The funds saw approximately $1.44 billion in net outflows between November 5 and November 11, with $299.9 million departing on Wednesday alone, according to data from SoSoValue. This brings the total net outflows for November to $1.88 billion, adding to the $520 million that left the funds in October.

These outflows have occurred concurrently with a sell-off in artificial intelligence and technology stocks. On November 5, the day the Nasdaq Composite plunged 5.5%, Bitcoin ETFs recorded net outflows of about $430 million.

“This wave of outflows is the result of institutional investors actively or passively reducing their risk exposure following a decline in macro risk appetite, which is not yet sufficient to prove that Bitcoin’s long-term allocation thesis has reversed,” Tim Sun, senior researcher at HashKey, told Decrypt.

The cumulative outflows over five days represent roughly 2.6% of the funds’ $55.1 billion in total net inflows, which Sun described as “far from a full-scale retreat.” However, the total net assets of these funds have fallen to $93.7 billion, a decrease of about 45% from their peak of $169.5 billion in October 2025. This decline is attributed to both outflows and falling prices.

Bitcoin is currently trading at $73,358, down 0.87% over the past 24 hours, according to Decrypt data. On Decrypt Predict, users assigned a 40% probability to Bitcoin trading above $74,000 on Sunday afternoon and a 94% chance it would remain above $70,000. Sun estimates the average holding cost for spot Bitcoin ETFs to be around $81,000, indicating that some ETF holders are currently facing unrealized losses. He suggested that some investors might further reduce their exposure as they re-evaluate their allocations at the year-end.

Concerns Mount Over Lack of New Buyers

Analysts are expressing greater concern over a shortage of new buyers entering the market. In a note shared with Decrypt, Greg Cipolaro, head of research at BitGo, pointed out that the post-election market rally only brought $75 million into spot Bitcoin ETFs. Simultaneously, the supply of dollar-pegged stablecoins contracted by 1.9% to $286.3 billion, “suggesting little fresh capital is waiting on the sidelines.” Onchain analytics firm Glassnode reported that the total stablecoin supply decreased by $14.2 billion in the 30 days leading up to November 9, marking the fastest contraction since June 2022, according to Decrypt’s report on Wednesday.

The basis trade, a strategy where hedge funds buy spot ETF shares while shorting futures to profit from the price difference, has also become less appealing. The basis has fallen below borrowing costs, prompting many funds to exit the strategy, Cipolaro explained. Consequently, ETF flows may now more directly reflect directional demand for Bitcoin than in the past, according to Sun.

Corporate buying activity has also slowed. The premium of Grayscale’s stock over the value of its Bitcoin holdings has narrowed, diminishing the incentive for the company to raise capital for further purchases. Additionally, MSCI’s decision to exclude it from its indexes could curtail passive investment, Sun noted.

“The most critical factor to watch right now is the persistent lack of buying demand itself, the impact of which on prices may be more significant than the outflow figures alone,” he stated.

Cipolaro added that Bitcoin has declined alongside risk assets but has lagged in their recoveries. “Unless it begins to participate in rallies and ETF demand strengthens, digital assets could remain exposed to further downside without benefiting from a broader risk asset rebound,” he wrote.

Historical Parallels Drawn to Gold ETFs

Not all observers view the current outflows as a long-term negative indicator. Eric Balchunas, a Bloomberg ETF analyst, drew a comparison between Bitcoin ETFs and the gold ETF GLD. GLD experienced a significant investor exodus, with around 40% of its investors leaving after its 2011 peak. It took nearly a decade for the fund to recover its previous asset high, though it now holds nearly three times that initial peak. “Assets without cash flows run purely on sentiment and it changes,” Balchunas commented on social media.