Institutional Outflows Hit New High
BlackRock’s iShares Bitcoin Trust (IBIT) posted its largest-ever daily outflow on Tuesday, marking a major shift in institutional crypto exposure. Data from SoSoValue shows that IBIT saw $523.15 million leave the fund — surpassing its previous $463 million record set on Nov. 14. This brings the ETF to five consecutive days of outflows, totaling $1.43 billion.
With $72.76 billion in net assets, IBIT remains the world’s largest spot bitcoin ETF, but it has now experienced four straight weeks of negative flows, losing $2.19 billion over that period.
Bitcoin Price Volatility Drives Rebalancing
The heavy outflows coincided with bitcoin’s sharp correction. BTC dropped below $90,000 earlier this week after hitting an all-time high of $126,080 in early October. The leading cryptocurrency has since rebounded 1.6% in the last 24 hours, trading at $91,849.
Despite outflows, analysts say institutions are not exiting bitcoin — they’re repositioning. According to Vincent Liu, CIO at Kronos Research, the data suggests strategic adjustments rather than investor panic.
“Record-high IBIT outflows signal institutional recalibration, not capitulation,” Liu said. “Allocators are trimming risk and tightening exposure until macro conditions become clearer.”
Macroeconomic Pressure and Liquidity Concerns
Crypto markets continue to face reduced liquidity due to the prolonged U.S. government shutdown and uncertainty around the Federal Reserve’s December rate decision. Analysts expect liquidity to return gradually as the government reopens, but the upcoming Fed meeting remains the key market catalyst.
The CME FedWatch Tool currently shows a 48.9% probability of a 25 basis point rate cut next month — a decision that could influence bitcoin demand and ETF flows.
ETF Outflows Spread to Ethereum
IBIT’s massive withdrawals outweighed inflows into Grayscale and Franklin Templeton, resulting in a net outflow of $372.7 million across all U.S. spot bitcoin ETFs on Tuesday.
Ethereum ETFs reflected a similar trend. BlackRock’s ETHA saw $165 million in outflows, overshadowing $91 million in inflows across competing funds from Grayscale, Bitwise, VanEck, and Franklin Templeton.
Solana ETFs Extend 16-Day Inflow Streak
While bitcoin and ethereum ETFs saw red, Solana ETFs continued their winning streak. Two new Solana funds launched Tuesday: Fidelity’s FSOL, which secured $2.07 million in first-day inflows, and Canary Capital’s SOLC, which recorded no flows.
Bitwise’s BSOL, the first U.S. spot Solana ETF, added $23 million in inflows, while Grayscale’s GSOL gained $3.19 million. Since BSOL’s debut on Oct. 28, Solana ETFs have seen 16 straight days of positive flows, accumulating $420.4 million in total.
According to Liu, Solana’s momentum highlights rising interest in top-performing altcoins. “Solana ETF inflows show altcoins drawing allocators, delivering yield, and gaining traction,” he said. “With staking rewards bundled in, these ETFs make Solana exposure more attractive to a broader range of investors.”
XRP, Litecoin, and Hedera ETFs See Mixed Activity
Canary’s spot XRP ETF posted $8.32 million in net inflows on Tuesday. Meanwhile, the firm’s Litecoin ETF and Hedera ETF registered zero flows for the day.
