Bitcoin and Ethereum Spot ETFs Show Net Outflows Amid Market Decline

Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs) have experienced a significant shift, moving to net outflows as BTC breaks the critical $110,000 support level. This downturn reflects growing market uncertainty tied to macroeconomic factors, impacting institutional sentiment toward both assets.

November Outflows Mark Largest Declines of the Month

On November 29, data from Facade Investors revealed that Bitcoin ETFs recorded total net outflows of $470.7 million, equivalent to approximately KRW 669.7 billion. This sharp reversal followed four consecutive trading days of net inflows prior to November 28. Notably, the scale of these outflows marked the largest recorded in November to date.

Breakdown of BTC ETF Outflows

Specific products within the Bitcoin ETF sector saw substantial withdrawals, including:

• BlackRock IBIT: $88.1 million in outflows (-KRW 125.3 billion)
• Fidelity FBTC: $164.4 million in outflows (-KRW 233.8 billion)
• Bitwise BITB: $6 million in outflows (-KRW 8.5 billion)
• Ark Invest ARKB: $143.8 million in outflows (-KRW 204.6 billion)
• Grayscale GBTC: $65 million in outflows (-KRW 92.5 billion)
• Grayscale BTC: $3.4 million in outflows (-KRW 4.8 billion)

Ethereum ETFs See Similar Declines

Ethereum ETFs also reported significant losses during the same session, totaling $81.4 million in net outflows, approximately KRW 115.7 billion. This development followed two consecutive trading days of net inflows but reversed amid broader market volatility.

Breakdown of ETH ETF Outflows

• Fidelity FETH: $69.5 million in outflows (-KRW 98.8 billion)
• Grayscale ETHE: $16.1 million in outflows (-KRW 22.9 billion)
• Grayscale ETHE (duplicate allocation): $12.8 million in outflows (-KRW 18.2 billion)

Despite these losses, the BlackRock ETHA ETF managed an inflow of $21.4 million (approximately KRW 30.4 billion). However, this singular inflow was insufficient to counteract the broader decline in Ethereum ETF holdings for the day.

Macro Sentiment: Federal Reserve Uncertainty Drives Withdrawals

The synchronized net outflows of Bitcoin and Ethereum ETFs are being attributed to waning optimism over a potential interest rate cut by the U.S. Federal Reserve in December. Investors are speculating that further tightening of monetary policies may persist, leading to increased market pessimism about BTC’s ability to recover above its $110,000 support level.

This sentiment is reflected in institutional repositioning, with some analysts forecasting further downward pressure on Bitcoin. A market expert shared insights: “Institutional investors appear cautious, likely adjusting positions as BTC risks deeper declines if it fails to hold above $110,000. Ethereum is also seeing weaker price momentum, leading to short-term capital sell-offs.”

Current Market Prices: BTC and ETH in Decline

According to CoinMarketCap, Bitcoin is trading at $108,327 as of the time of reporting, marking a 3.96% drop over the past day. Ethereum prices have similarly declined, with ETH trading at $3,865, reflecting a 3.84% loss within the same period.

Conclusion: Risk and Volatility Shape ETF Market Trends

The reversal to net outflows within Bitcoin and Ethereum ETFs underscores heightened market uncertainty driven by macroeconomic factors and investor caution. As BTC struggles to hold pivotal support levels and ETH experiences waning price momentum, institutional investors appear to be reassessing portfolio positions ahead of potential interest rate decisions. This evolving dynamic continues to influence the trajectory of major crypto assets in the short term.