BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest daily net outflow since its inception, with $523.15 million withdrawn in a single day. This figure surpassed the previous outflow record set earlier in the month and concluded five consecutive days of withdrawals totaling $1.43 billion.
Despite this, IBIT remains the world's largest spot bitcoin ETF, holding over $72 billion in assets. However, the market sentiment has shifted. Over the past four weeks, the fund has recorded continuous net outflows amounting to $2.19 billion. This trend closely aligns with Bitcoin's significant pullback from its all-time high of $126,080 to below $90,000 earlier this week.
This suggests that institutions are not abandoning Bitcoin entirely but are rather reducing their exposure as macroeconomic signals remain volatile. Investors appear to be de-risking and awaiting greater clarity in the market.
Institutional Behavior and Market Dynamics
According to Vincent Liu, CIO at Kronos Research, this trend represents a recalibration rather than capitulation. Large allocators are managing risk and waiting for market conditions to become clearer. With the U.S. government reopening after a shutdown and the Federal Reserve's upcoming December decision potentially influencing market direction, investors are adopting a cautious approach to protect their positions.
Bitcoin has shown a modest recovery, trading above $91,000. However, liquidity remains constrained. The CME's FedWatch Tool indicates approximately a 49 percent probability of a 25-basis-point rate cut next month. Until this outlook becomes more definitive, institutions are likely to continue trimming their positions rather than increasing them.
Furthermore, IBIT's substantial outflows offset inflows from Grayscale and Franklin Templeton's bitcoin funds, resulting in a net outflow of $372.7 million for the entire spot BTC ETF market on that day. Ethereum ETFs also followed a similar pattern, with BlackRock's ETHA experiencing an outflow of $165 million, despite smaller inflows into other Ethereum-focused funds.
Solana ETFs Show Strength Amidst Bitcoin's Decline
In contrast to the outflows from Bitcoin ETFs, Solana ETFs are experiencing positive momentum.
Tuesday marked the launch of Fidelity’s FSOL and Canary Capital’s SOLC. FSOL recorded $2.07 million in inflows on its first day, while SOLC saw no initial flows. The more established Solana ETFs also demonstrated strong performance:
- •Bitwise’s BSOL: $23 million in inflows
- •Grayscale’s GSOL: $3.19 million in inflows
Since its launch on October 28, the BSOL ETF has achieved 16 consecutive days of net inflows, accumulating a total of $420.4 million.
This sustained inflow trend highlights a broader investor interest in altcoins that offer yield, activity, and momentum as Bitcoin's performance cools. Liu notes that Solana ETFs are among the newest offerings and that the inclusion of staking exposure attracts a different investor profile, one seeking both upside potential and productive assets.
Performance of Other Altcoin ETFs
Canary Capital’s spot XRP ETF saw steady demand, adding $8.32 million on Tuesday. However, its Litecoin ETF and Hedera ETF did not record any flows.
This divergence in performance is attributed to shifting market attention rather than outright rejection. Solana is currently attracting significant interest, while Bitcoin is in a risk-off phase, and other cryptocurrencies are awaiting clearer market direction.
The record outflow from IBIT, while notable, should not be interpreted as a panic signal. Institutions are adjusting their exposure in response to evolving macroeconomic conditions. Bitcoin remains a foundational asset, but Solana is currently capturing market attention.
Should liquidity improve and the Federal Reserve adopt a more dovish stance in December, the current market dynamics could change. For the time being, the capital rotation indicates that investment is not leaving the cryptocurrency space but is instead being reallocated within it.