Crypto Funds Lose $2B as BTC, ETH Hit by Major Outflows
CoinShares’ latest report shows crypto fund outflows surged to $2 billion in the week to Nov. 16, marking the largest weekly loss since February and the third straight week of net redemptions totalling $3.2 billion. Bitcoin outflows led the sell-off with $1.38 billion (2% of BTC AuM) withdrawn, while Ethereum redemptions reached $689 million (4% of ETH AuM). Smaller losses hit Solana (SOL) and XRP, at $8.3 million and $15.5 million respectively. Overall assets under management in digital asset ETPs have plunged 27% from an October peak to $191 billion. U.S.-based products accounted for most redemptions, including $1.1 billion from spot Bitcoin ETFs, amid a near 10% drop in BTC prices. Multi-asset funds were an exception, drawing $69 million as traders sought diversification. Analysts cite heightened monetary policy uncertainty, whale selling and waning ETF interest. These crypto fund outflows reflect weak market momentum and policy uncertainty. Market watchers—including Peter Schiff and Robert Kiyosaki—are split on allocating to gold or accumulating crypto. Traders should monitor Fed signals and whale activity for potential market stabilisation or further downside.
Bearish
The surge in crypto fund outflows, led by $1.38 billion in Bitcoin redemptions and $689 million in Ethereum withdrawals, signals a short-term bearish outlook for BTC and ETH. Large redemptions from U.S.-based ETPs, including $1.1 billion from spot Bitcoin ETFs, coincide with a near 10% drop in Bitcoin’s price and weak market momentum. Heightened monetary policy uncertainty and significant whale selling pressure have eroded investor confidence, suggesting potential for further near-term downside. However, the 27% decline in total assets under management from October’s peak may present buying opportunities if Fed guidance turns dovish. In the long term, continued ETF adoption and institutional interest could stabilise the market, but traders should remain cautious until clearer signals emerge.