US Bitcoin and Ether ETFs Record Hundreds of Millions in Outflows
United States spot Bitcoin and Ether exchange traded funds saw heavy net redemptions on November 2, led by large outflows from BlackRock’s IBIT.
US Bitcoin and Ether ETFs Record Hundreds of Millions in Outflows
United States spot Bitcoin and Ether exchange traded funds saw heavy net redemptions on November 2, led by large outflows from BlackRock's IBIT.
US spot Bitcoin ETFs post net redemptions
United States spot Bitcoin ETFs shed roughly $399 million on November 2, according to data reported by Crypto Briefing. The more precise figure for Bitcoin funds was a net outflow of $398.6 million, driven almost entirely by a single product. BlackRock’s iShares Bitcoin Trust, trading under the ticker IBIT, recorded redemptions of $405.3 million.
Because the single fund outflow was larger than the category net total, the remaining Bitcoin ETFs were collectively slightly positive on the day. The November 2 figures followed a larger single day exit of $643.3 million reported across October 31 and November 1. Total assets in US spot Bitcoin ETFs sat between $98 billion and $100 billion around this period.
When investors redeem shares of a spot Bitcoin fund, the issuer must shrink its holdings to match demand. BlackRock previously transferred thousands of Bitcoin to Coinbase Prime to handle similar redemptions. Company statements indicate these mechanical transfers adjust holdings to match client demand rather than signaling a corporate shift regarding the asset.
Ether funds extend redemption streak
Spot Ether funds lost another $140 million on November 2, extending their redemption streak to six straight days. The daily loss represents a bit over 1 percent of the approximately $13.2 billion in assets held by Ether ETFs at the time. This proportion makes the Ether hit heavier than the Bitcoin outflow relative to total assets.
The current streak follows a difficult October for Ether products. Ether ETFs posted their largest monthly outflow on record during that month, totaling $1.61 billion. That exodus followed a three month run of inflows, marking an abrupt shift in direction for investors.
Research suggests a recent security incident at Binance may have influenced investor behavior ahead of the latest outflows. Additional reports noted that Tether blacklisted two addresses on Ethereum and Tron following a security incident at Mercado Bitcoin. ETF flows can respond to multiple external factors simultaneously while issuers manage underlying holdings.
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