Bitcoin Spot ETFs Record Second-Largest Outflow Amidst Nvidia-Induced Market Jitters
US Bitcoin spot Exchange Traded Funds (ETFs) experienced a substantial net outflow of $903 million on Thursday, marking their second-largest single-day loss since their inception. This significant capital withdrawal coincided with heightened volatility in the US stock market, triggered by tech giant Nvidia’s latest earnings report, signaling a sharp increase in market risk aversion. Consequently, Bitcoin’s price dipped below the $82,000 threshold today (the 21st).
According to monitoring data from SoSoValue, eight Bitcoin ETFs registered withdrawals on Thursday, Eastern Time. BlackRock’s IBIT bore the brunt of the sell-off, recording a staggering $355 million in net outflows. Grayscale’s GBTC followed with a net outflow of $199 million, while Fidelity’s FBTC was also significantly impacted, losing $190 million. Other prominent funds, including Bitwise, Ark & 21Shares, VanEck, and Franklin Templeton, were not spared from the widespread withdrawals.
This performance represents the most severe single-day downturn since February 25th of this year, a period when former US President Donald Trump’s announcement of new trade tariffs incited panic selling across both stock and cryptocurrency markets.
Cumulatively, US Bitcoin ETFs have now seen a net outflow of $3.79 billion this November, surpassing February’s previous high and setting a new record for the largest monthly capital flight. IBIT alone accounts for over $2 billion of these outflows this month.
Rachael Lucas, an analyst at BTC Markets, highlighted the dramatic shift: “This is a stark contrast to the steady inflows observed earlier this month. The bleeding isn’t confined to the cryptocurrency market; the surge in receivables within Nvidia’s earnings report spooked the broader stock market, igniting a more pervasive risk-off sentiment.”
When tech giants stumble, global liquidity tightens, and Bitcoin naturally feels the impact.
Amidst this atmosphere of market apprehension, Rachael Lucas urged investors to maintain a calm perspective: “Institutions are not abandoning ship; they are merely furling their sails in the storm.”
She further underscored that the cumulative net inflow for Bitcoin spot ETFs remains robust at $57.4 billion, with their total assets representing approximately 6.5% of Bitcoin’s overall market capitalization.
Times of extreme market panic often breed the next wave of opportunity; mastering the timing is key.
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