Bitcoin Exchange-Traded Funds (ETFs) are closing in on $3 billion in net outflows for November, putting the products on track for their worst month yet after the BlackRock fund logged its biggest day of redemptions on record.
US Spot Bitcoin (BTC) ETFs extended their five-day losing streak on Tuesday, logging another $372 million in net negative inflows, according to farside investors.
BlackRock’s Ishares Bitcoin Trust (IBIT) ETF recorded $523 million in inflows, marking the largest day of inflows since its debut in January 2024.
The latest inflows bring November’s total to $2.96 billion, making it the second-worst month for spot Bitcoin ETFs. BlackRock alone accounted for $2.1 billion of outflows.
Another week of selling could push redemptions past the $3.56 billion seen in February, marking the weakest month for ETF flows despite the historical tendency for November to be one of Bitcoin’s strongest periods.
Spot bitcoin ETF inflows are Bitcoin’s main driver Momentum to 2025Global Head of Digital Assets Research, Geoff Kendrick, told Cointelegraph recently.
Related: Bitcoin ETFS bleeds $866m in second-worst day on record, but some analysts are still bullish
ETF outflows continue to mount despite investors expecting a month of upside for Bitcoin, based on historical data. November was the best month for Bitcoin historical returns, with BTC reaching a 41.22% rally during the month, according in coinglass data.
Looking at other crypto funds, ether (Eth) ETFs recorded $74.2 million in inflows on Tuesday, while Solana (Sol) ETFs have attracted $26.2 million in inflows, which is more than $421 million in total investments since launch, according to Farside Investors.
Related: Metaplanet’s Bitcoin gains plunge 39% as October crash squeezes corporate fortunes
The falling rate of the falling rate is weighed on sentiment
Bitcoin printed it Last week’s Cycle’s fourth “Death Cross”, a technical chart pattern that appears when an asset’s short-term momentum indicators fall below the long-term trend.
While this is historically considered a “bearish technical signal,” the death of the cross could also signal a macro under a strong reversal, depending on the broader economic context, Lacie Zhang, research analyst at Bitget Wallet, told Cointelegraph.
“At this time, the signal comes at a moment when liquidity is just starting to stabilize, the odds of a rate-cut-cut fall from near-certainty to ~ 50%, and market risks remain unresolved (…)”
Some of the concerns that are specific to crypto include a warning from the chairman of Bitmine Immersion, Tom Lee, who said that the two main market makers are facing financial shortages, the analyst explained.
Meanwhile, markets are pricing in a 46% chance of a 25 basis point rate cut during the Federal Reserve’s Dec. 10 meeting, down from 93.7% a month ago, according in CME Group’s fedwatch tool.
The development inspired a repositioning of the industry’s most successful traders, tracked as “smart money” traders on Nansen’s blockchain intelligence platform, for a more short-term downside.
Smart Money traders have added $5.7 million worth of cumulative short positions in the past 24 hours, signaling expected downside, as this cohort is net short on Bitcoin to the tune of $275 million, according to Nansen.
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