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Bitcoin Updates: Crypto Shares Surge While ETFs See Massive Outflows—Is the Market Divided on Digital Assets?

Bitcoin Updates: Crypto Shares Surge While ETFs See Massive Outflows—Is the Market Divided on Digital Assets?

Bitget-RWA2025/11/20 15:28
By:Bitget-RWA

- US stocks rose on Nov 17 as crypto equities gained despite ETF outflows. - BlackRock's IBIT lost $463M, while QUBT surged 13.3% on quantum computing optimism. - Germany added $13.2M to crypto ETPs amid declines, contrasting US outflows. - Rising Japanese bond yields and Fed signals heightened macroeconomic risks. - Investors balance niche sector optimism against broader economic pressures.

On November 17, US equities opened in positive territory, with all major benchmarks advancing as sector-specific

mingled with broader macroeconomic challenges. Before the market opened, shares tied to cryptocurrencies jumped, buoyed by a recovery in and valuations. (RIOT.O) edged up 0.6%, advanced 2.5%, and (COIN.O) increased by 1%, even as the wider crypto market saw continued fund withdrawals.

These gains came in contrast to a difficult period for crypto exchange-traded funds (ETFs), which experienced unprecedented outflows. BlackRock's IBIT, the largest Bitcoin ETF, saw $463 million withdrawn on November 14,

. Globally, crypto ETPs lost a combined $2 billion in the week ending November 14, with US investors responsible for 97% of the redemptions. Experts pointed to increasing macroeconomic uncertainty, hawkish signals from the Federal Reserve, and a risk-averse mood driven by large-scale crypto holders selling as reasons for the pullback.

Despite the withdrawals, quantum computing stocks stood out as a strong performer. QUBT, a prominent player in photonic quantum technology, soared 13.3% to $12.01,

. The company's collaborations with wireless and aerospace firms, along with $100 billion in institutional investments into quantum ETPs over the past two years, highlighted its potential to transform long-term industry practices.

Market observers also pointed to differing trends across regions. While US investors continued to withdraw from crypto assets, Germany moved in the opposite direction,

even as prices fell. This contrast underscored the tendency for European investors to buy during market downturns. At the same time, global economic and political developments remained significant, and the prospect of new fiscal stimulus packages raising concerns about inflation and their impact on riskier assets.

These conflicting signals highlighted the market's heightened sensitivity to economic developments. Federal Reserve leaders, including Vice Chair Philip Jefferson and Governor Christopher Waller, were set to discuss the economic outlook, adding to market uncertainty. In addition,

after news of a 17-trillion-yen stimulus plan sparked worries about fiscal stability, potentially putting upward pressure on Treasury yields and technology stocks.

Investor attitudes also remained closely linked to regulatory news. Laurent Benayoun, CEO of Acheron Trading,

on upcoming economic data, such as employment reports and Federal Reserve policy updates. Positive developments in regulation or interest rate cuts could reverse the trend, while continued hawkish policies might accelerate outflows.

The market's short-term direction will likely be shaped by its ability to weigh optimism in specialized sectors like quantum computing against broader economic risks. With the US leading global outflows, institutional investors are increasingly shifting toward multi-asset portfolios and short-Bitcoin strategies as a hedge

. For now, the strength of crypto-related stocks and the rally in quantum technology suggest that innovation-driven optimism continues to offset some of the prevailing economic headwinds.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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