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Bitcoin News Update: Bitcoin ETFs See $1.3B Outflow While Institutional Investors Enter the Market

Bitcoin News Update: Bitcoin ETFs See $1.3B Outflow While Institutional Investors Enter the Market

Bitget-RWA2025/11/21 16:08
By:Bitget-RWA

- Bitcoin fell below $90K after erasing 2025 gains, with U.S. spot ETFs recording $1.32B in outflows as BlackRock's IBIT lost $532M. - Institutional buyers like El Salvador and MicroStrategy added $100M+ in BTC, contrasting with ETF redemptions and bearish options activity. - Regulatory uncertainty and technical indicators suggest prolonged volatility, with key support levels at $89.4K and $82.4K under pressure. - Binance's Teng called the 21% November drop part of healthy consolidation, while Dimensional

Bitcoin's recent slide below $90,000 has reignited worries about market instability, as institutional withdrawals and negative sentiment heighten the sense of unpredictability. After reaching an all-time high of $126,200 in early October, the cryptocurrency has wiped out its 2025 gains and now

. The downturn has been made worse by , with U.S. spot ETFs seeing $1.32 billion in outflows just between November 10 and 14. BlackRock's IBIT, the largest bitcoin ETF in the U.S., , losing $532.4 million during this stretch, while Fidelity's FBTC experienced $89 million in redemptions.

Bitcoin News Update: Bitcoin ETFs See $1.3B Outflow While Institutional Investors Enter the Market image 0

The negative trend persisted into the next week, as

. BlackRock's IBIT alone , causing its price to drop 16% to $52, a level last observed in April. The ETF's difficulties mirror broader market unease, with compared to calls, indicating strong hedging against further losses.

Amid the market turbulence, some institutional investors are taking advantage of the lower prices. El Salvador increased its holdings by 1,098 bitcoin (about $100 million) last week, while

at an average cost of $102,200. in structured notes linked to IBIT, reflecting changing risk preferences. Analysts point out that these actions reveal a widening gap: as some retail and institutional investors exit, others see the decline as a chance to buy.

The recent selloff has also highlighted weaknesses in the ETF model.

in outflows this month, the highest monthly withdrawal since its launch in January 2024. At the same time, ETFs have performed even worse, with and Grayscale's ETHE losing $121.8 million. The broader market's troubles are intensified by , as MSCI's possible removal of crypto-related companies like Strategy from major indexes could result in up to $8.8 billion in outflows.

Technical signals indicate the downturn may persist.

for Bitcoin at $89,400 and $82,400, with the worst-case scenario suggesting a fall toward $45,500. The Cumulative Value Days Destroyed (CVDD) model—a historical tool for predicting Bitcoin bottoms—adds to these worries, could deepen the decline.

Binance CEO Richard Teng

, noting that Bitcoin's recent moves are in line with cycles seen in traditional financial markets. "Consolidation is necessary for the sector to stabilize," he commented, acknowledging the 21.2% drop in November but highlighting Bitcoin's 100%+ gain over the past 18 months.

The recent downturn has also prompted new regulatory actions.

to obtain SEC approval for a hybrid ETF-mutual fund, reflecting increasing institutional interest in digital assets. Still, obstacles remain, such as inconsistent regulations and security concerns, which continue to hinder widespread adoption.

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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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