Bitcoin ETFs, once seen as a pillar of optimism in the crypto sector,
are now experiencing significant redemptions
, as investors grow more cautious. In November 2025, U.S. spot
Bitcoin
ETFs saw an extraordinary $903 million withdrawn, with BlackRock’s
iShares Bitcoin Trust
(IBIT) alone facing a record $523 million outflow in a single day on November 19. This represents the largest withdrawal since the ETF’s launch in January 2024, highlighting a broader move by both institutional and retail investors to reduce risk amid turbulent markets
as reported by Coindesk
.
The pace of withdrawals picked up toward the end of November, with BlackRock’s
IBIT
leading the trend. The ETF’s price dropped by 16% to $52, a level not seen since April 2025, as traders increasingly used put options to guard against further losses.
The 250-day put-call skew for IBIT options climbed to a seven-month peak
at 3.1%, reflecting a pessimistic outlook. Total outflows for the month hit $2.96 billion,
making it the second-largest monthly outflow for Bitcoin ETFs since their inception
. Fidelity’s FBTC and other major funds also saw withdrawals, but
BlackRock was responsible for more than 70% of the total outflows
.
The
Ethereum
ETF market did not fare any better. BlackRock’s ETHA led Ethereum ETF outflows, losing $421.4 million in a single week, while Grayscale’s ETHE experienced a $121.8 million reduction.
Combined Ethereum ETF outflows for the week totaled $728.3 million
, with no significant inflows to offset the losses.
Analysts point to a correction following October’s rally
, as both Bitcoin and
ether
prices pulled back from their late-October peaks.
Bitcoin’s value fell to $86,300
, its lowest in seven months, while ether dropped below $3,000, fueling concerns about further declines.
Market observers cite a combination of profit-taking and uncertainty in the broader economy.
Vincent Liu, IT Director at Kronos Research, commented
that institutions are adjusting their portfolios rather than making a complete exit, waiting for clearer economic signals. “Major asset managers are reducing risk and evaluating entry points,” he explained.
Meanwhile, Eric Balchunas from Bloomberg Intelligence pointed out
that inflows before October remain a solid foundation, indicating the sector’s underlying strength despite the recent downturn.
Technical analysis supports the negative sentiment. Bitcoin’s relative strength index (RSI) neared oversold levels, and blockchain data showed significant selling from long-term holders.
The CoinMarketCap Fear and Greed Index dropped sharply
to 15 out of 100, its lowest point this year—a level that has often preceded rebounds in the past. Still, some analysts warn that concerns over quantum computing and regulatory changes could extend the downturn.
The wave of outflows has also influenced the wider market.
More than $910 million in leveraged positions were wiped out
within a day, with long positions accounting for $703 million of those losses.
Despite these challenges, experts are split
on the future. Some believe current prices offer attractive buying opportunities, while others caution that institutional hesitancy may delay a rebound until there is more certainty in the economic outlook.
