U.S. spot Bitcoin ETFs have bled $1.44 billion over five consecutive days, a sharp retreat that has dragged net assets down to $93.7 billion. This figure sits roughly 45% below the peak of $169.5 billion recorded in October 2025. The outflows accelerated during a turbulent week for markets, with the funds losing $299.9 million on Wednesday alone. November total outflows now stand at $1.88 billion, following $520 million in exits during October.
Risk appetite collapses alongside tech stocks
The sell-off coincided with a crash in AI and technology shares. On November 5, the Nasdaq Composite dropped 5.5% in a single day, triggering about $430 million in Bitcoin ETF outflows. Tim Sun, senior researcher at HashKey, told Decrypt that institutional investors are actively reducing risk exposure because macro risk appetite has declined. He argued this wave is "far from a full-scale retreat" since it represents only 2.6% of the $55.1 billion in cumulative net inflows. However, the average holding cost for these funds is around $81,000, leaving many holders sitting on unrealized losses.
Bitcoin trades at $73,358, down 0.87% in the past 24 hours. Greg Cipolaro, head of research at BitGo, warned that the post-election bounce brought only $75 million into the funds. He noted that stablecoin supply contracted 1.9% to $286.3 billion, suggesting little fresh capital waits on the sidelines. Glassnode found total stablecoin supply fell by $14.2 billion in the 30 days through November 9, the fastest contraction since June 2022. The basis trade also lost appeal when the spread fell below borrowing costs, prompting hedge funds to exit. Corporate buyers slowed as well; Strategy’s stock premium narrowed, and MSCI excluded it from its indexes.
Buying demand dries up
Cipolaro stated that digital assets could remain exposed to further downside unless they participate in broader rallies. He observed that Bitcoin has fallen with risk assets but lagged their recoveries. Eric Balchunas, a Bloomberg ETF analyst, compared the current situation to gold ETF GLD. That fund saw 40% of investors leave after its 2011 peak and took nearly a decade to recover its assets. Balchunas wrote that assets without cash flows run purely on sentiment, which changes. I view the persistent lack of buying demand as the most critical factor right now. Its impact on prices may be more significant than the outflow figures alone. Investors must reassess allocations at year-end, potentially cutting exposure further. The market clearly lacks the new buyers needed to sustain current price levels.
