Key takeaways
- US spot Bitcoin ETFs recorded $115.6 million in outflows on Nov. 3
- BTC recovered toward $78,000 after briefly falling to $75,600
- Bitcoin's ability to reclaim $80,000 could determine whether the crypto sustains its recovery
US-listed spot Bitcoin exchange-traded funds (ETFs) recorded $115.6 million in net outflows on Nov. 3. According to the ETF flow data , the latest withdrawals followed a much larger $398.6 million outflow on Monday, and brought total net outflows for the first two trading sessions of November to approximately $514.2 million.
The selling also followed a particularly difficult end to October, when spot Bitcoin ETFs lost $643.2 million on Oct. 30.
Bitcoin ETF flows (Source: Farside Investors)
BlackRock's IBIT Leads Bitcoin ETF Withdrawals
BlackRock's iShares Bitcoin Trust (IBIT) accounted for the largest withdrawals on Nov. 3, and recorded $95 million in net outflows. Grayscale's Bitcoin Mini Trust (BTC) followed with $52.6 million in withdrawals, while several other funds reported little or no activity.
However, not every Bitcoin ETF experienced selling pressure. Fidelity's FBTC attracted $6.8 million in fresh capital, while Bitwise's BITB recorded $21.9 million in inflows. Grayscale's GBTC also saw $3.3 million enter the fund.
These inflows partially offset the larger withdrawals from BlackRock and Grayscale, but were not enough to bring the overall market back into positive territory.
Bitcoin Price Rebounds Despite Continued ETF Outflows
Bitcoin's price action over the same period presented a more mixed picture. The cryptocurrency recovered some of its recent losses despite continued withdrawals from US-listed ETFs.
BTC traded around $76,300 on Nov. 3 before recovering toward $78,000. The cryptocurrency then experienced another sharp decline, and briefly fell toward $75,600 overnight before rebounding. By early Nov. 4, Bitcoin recovered toward $78,230.
The divergence between Bitcoin's recovery and ETF outflows suggests that buying activity elsewhere in the market may be helping absorb institutional selling pressure. However, Bitcoin is still below the $80,000 level, which could become an important area to reclaim if bullish momentum strengthens.
What Comes Next for Bitcoin?
Although Tuesday's $115.6 million outflow was considerably smaller than the previous two sessions, the continued withdrawals suggest that institutional investors are cautious. They will now be watching whether Bitcoin can sustain its recovery toward $78,000 and eventually reclaim $80,000.
Meanwhile, the Nov. 6 US employment report could influence expectations surrounding Federal Reserve monetary policy, and could potentially introduce more volatility into the cryptocurrency market.