Bitcoin exchange-traded funds (ETFs) are on track for their weakest month since launching almost two years ago as investors pulled assets amid weakening demand.
Data compiled by Bloomberg indicates that US-listed Bitcoin ETFs have seen roughly $3.5 billion withdrawn so far in November, nearly matching the previous record of $3.56 billion set in February.
BlackRock’s IBIT, which represents about 60% of assets among the largest Bitcoin ETFs, accounted for $2.2 billion of November redemptions, positioning the fund for its worst month on record unless trends reverse.
Softer ETF flows have been attributed to several factors, including macroeconomic risk-off sentiment, regulatory uncertainty, and evolving institutional demand.
The outflows have weighed on Bitcoin prices, creating a feedback loop in which ETF redemptions contribute to downward pressure on the spot market, further dampening investor sentiment. Bitcoin prices have fallen from highs above $120,000 to near $80,000 over just a few weeks.
Bullish signals
deVere Group’s Nigel Green remains bullish on the cryptocurrency, projecting it will rebound if the Federal Reserve cuts rates its upcoming December 9 to 10 meeting.
“The scale of this pullback is the market’s response to uncertainty, not a collapse in underlying demand,” he believes. “Many investors have been reducing exposure because they lack clarity on the Federal Reserve’s next move, among other reasons. Once that clarity arrives, positioning will likely shift quickly.”
According to Green, the Fed’s communication will be just as significant as its potential rate move itself.
“Should policymakers indicate that further adjustments remain possible in 2026, then the impact will extend far beyond the December meeting,” he wrote. “Investors would reposition across risk assets, and Bitcoin could be expected to capture a meaningful share of that rotation.”
Green also highlighted that the recent price correction is “materially different” from previous drawdowns.
“The fall from $120,000 has eliminated layers of leverage that were built into the rally,” he wrote. “The market today is structurally cleaner than it was at the peak. This matters because Bitcoin’s ability to recover depends on what remains after forced selling clears.
“This Fed meeting is going to be a decisive moment for digital-asset markets. Bitcoin has absorbed a severe correction, but the essential foundations remain strong.”