Bitcoin Updates: Concerns Over Monetary Policy and Large-Scale Investor Sell-Offs Lead to Unprecedented Crypto ETF Withdrawals

BlackRock's

ETF, the largest in the United States, experienced a single-day outflow exceeding $463 million on Nov. 14, setting a new record for withdrawals and highlighting a widespread retreat from crypto investment products. The (IBIT) faced a surge in redemptions as investors pulled back due to economic uncertainty, significant crypto selling, and a general move away from risk, . This occurred as digital asset exchange-traded products (ETPs) saw $2 billion withdrawn last week—the highest since February 2025— to $191 billion, down from a peak of $264 billion in October.

Bitcoin (BTC-USD) and

(ETH-USD) ETFs were hit hardest by the selloff. Over three weeks, Bitcoin ETPs saw $1.38 billion in outflows, while Ethereum ETPs lost $689 million, amounting to 4% of their AUM . The United States was responsible for 97% of the global outflows, with American investors withdrawing $1.97 billion, while Germany saw net inflows as local traders viewed the downturn as a buying chance . In contrast, (SOL-USD) and ETFs moved against the trend, in new investments, respectively, continuing their streak of capital inflows.

According to Matrixport, the downturn signals waning momentum and reduced institutional interest. Bitcoin's value

, hitting a six-month low as ETF outflows coincided with a sharp price correction. "The market is declining, so it's not surprising to see ETFs experiencing withdrawals as investors seek to cash out," said Nicolai Sondergaard, a research analyst at Nansen . He also noted that fund flows will likely remain closely linked to broader economic trends, especially Federal Reserve decisions.

were identified as the main reasons behind the withdrawals. James Butterfill, head of research at CoinShares, pointed out that the drop in AUM demonstrates "the impact of unclear monetary policy and major crypto holders selling" as significant contributors . The wave of outflows also coincided with higher U.S. tariffs, disappointing corporate results, and a cautious Federal Reserve, such as gold, which has risen 55% in 2025.

Despite the struggles for Bitcoin and Ethereum ETFs, multi-asset and short-Bitcoin strategies have gained popularity. Over the past three weeks, investors

, while short Bitcoin ETPs attracted $18.1 million in new funds .

The recent selloff has sparked discussion about whether the market is entering a "mini bear market"

. Simon Gerovich, CEO of Metaplanet, argued that ETFs offer "static exposure" to Bitcoin, meaning their holdings won't increase unless new investments come in . With Bitcoin trading near $95,200 and Ethereum below $3,200, analysts are split on the likelihood of a short-term recovery. Some draw parallels to 2015, when Bitcoin surged 45% after a similar downturn, while others warn that a "death cross" technical pattern could indicate further declines .