U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) recorded approximately $530 million in combined net outflows on Thursday, November 5, as cryptocurrency prices declined alongside a sharp selloff in U.S. technology stocks.
The latest Bitcoin ETF outflows reflected weakening investor sentiment after a brief post-election rally. Bitcoin fell below $76,000, reversing gains recorded earlier in the week following the U.S. midterm elections.
According to data from SoSoValue, spot Bitcoin ETFs experienced approximately $430 million in net withdrawals, while spot Ethereum ETFs recorded another $100 million.
The sudden reversal followed Wednesday’s combined ETF inflows of $128 million, highlighting the rapid change in cryptocurrency market sentiment.
Bitcoin and Ethereum ETF Outflows Reach $530 Million
Institutional cryptocurrency investment products faced renewed selling pressure as broader financial markets experienced substantial volatility.
Bitcoin had briefly climbed above $80,000 on Wednesday, supported by improving market sentiment following Democratic victories in the U.S. midterm elections.
However, the recovery proved short-lived.
By Thursday, Bitcoin had fallen below $76,000 as investors reduced exposure to risk-sensitive assets.
The cryptocurrency decline coincided with significant losses across Wall Street. The technology-heavy Nasdaq Composite plunged 5.5%, recording its largest single-day decline since April 2025.
The simultaneous weakness in cryptocurrencies and technology stocks suggested that broader market uncertainty was influencing investor positioning across multiple asset classes.
Fidelity Leads Bitcoin ETF Withdrawals
Fidelity’s Wise Origin Bitcoin Fund (FBTC) experienced the largest withdrawals among U.S. spot Bitcoin ETFs during Thursday’s trading session.
According to data from Farside Investors, FBTC recorded approximately $200 million in net outflows.
This marked a sharp reversal from Wednesday, when the fund attracted roughly $237 million in new investment.
BlackRock’s iShares Bitcoin Trust (IBIT) also suffered significant withdrawals, registering approximately $105 million in net outflows.
The latest figures extended IBIT’s negative flow streak to five consecutive trading sessions.
Since October 30, investors have withdrawn more than $1 billion from the BlackRock Bitcoin ETF.
Furthermore, cumulative year-to-date net flows for U.S. spot Bitcoin ETFs reportedly moved to approximately $510 million in net withdrawals following Thursday’s session.
The figures highlight the deterioration in investor demand for cryptocurrency investment products during the latest market correction.
Bitcoin Price Falls as Nasdaq Selloff Intensifies
Bitcoin’s decline occurred alongside a broader downturn in U.S. equities, particularly among technology and artificial intelligence companies.
The Nasdaq Composite’s 5.5% drop added pressure to cryptocurrencies, which have increasingly demonstrated sensitivity to changes in global risk appetite.
During periods of heightened uncertainty, investors often reduce their exposure to volatile assets, including technology shares and digital currencies.
This shift can contribute to simultaneous declines across different financial markets.
The latest Bitcoin ETF outflows also suggest that some investors are becoming more cautious about maintaining cryptocurrency exposure during periods of substantial market volatility.
However, ETF withdrawals alone do not necessarily indicate a lasting change in Bitcoin’s long-term investment outlook.
Crypto Analyst Sees Potential Bitcoin Bottom Near $75,000
Despite the recent selling pressure, some cryptocurrency analysts believe Bitcoin could be approaching a short-term market bottom.
Crypto analyst Michaël van de Poppe suggested that both Bitcoin and the Nasdaq could stabilize following Thursday’s sharp declines.
In a post on X, van de Poppe indicated that Bitcoin might briefly move below $75,000 before establishing a near-term bottom.
His assessment reflected the possibility that the latest market downturn could be approaching a period of temporary exhaustion.
Nevertheless, a potential recovery remains uncertain.
Bitcoin’s ability to stabilize will likely depend on broader financial market conditions, investor demand, and whether selling pressure begins to ease.
Further declines in technology stocks could continue affecting cryptocurrency prices, particularly if investors maintain a defensive approach toward risk assets.
Is the Current Crypto Selloff Similar to the 2008 Financial Crisis?
The severity of the recent market correction has also prompted comparisons with previous financial crises.
However, Dean Lyulkin, CEO of Cardiff and founder of investment publication The Dean’s List, believes the current economic environment differs significantly from conditions preceding the 2008 global financial crisis.
Lyulkin emphasized that the earlier financial crisis developed amid serious structural weaknesses in the housing market and financial system.
At that time, the Federal Reserve had already implemented substantial interest rate increases, while deteriorating housing conditions were creating mounting financial stress.
By contrast, Lyulkin argued that today’s banking system and household balance sheets remain considerably stronger.
He acknowledged that certain vulnerabilities still exist across the economy.
These include potential risks involving commercial real estate, private credit markets, and excessive investment in artificial intelligence infrastructure.
However, he suggested that these concerns do not necessarily indicate the same systemic conditions that contributed to the 2008 financial collapse.
His comments highlight the importance of distinguishing between a sharp market correction and a broader financial crisis.
Bitcoin ETF Outlook: Can Institutional Demand Recover?
The latest $530 million in combined Bitcoin and Ethereum ETF outflows underscores the volatility currently affecting cryptocurrency investment products.
Although Wednesday’s inflows briefly suggested improving demand, Thursday’s withdrawals demonstrated how quickly investor sentiment can reverse.
The persistent selling in BlackRock’s IBIT and the substantial withdrawals from Fidelity’s FBTC will remain important developments for cryptocurrency market participants to monitor.
Meanwhile, Bitcoin’s price behavior around $75,000 could provide additional insight into whether the current correction is approaching a temporary bottom.
A stabilization in technology stocks and broader financial markets could help restore confidence in cryptocurrency assets.
However, continued equity market weakness and further ETF withdrawals could prolong selling pressure.
For now, the latest developments suggest that Bitcoin and Ethereum remain closely exposed to changes in institutional risk appetite.
Investors will be watching whether ETF flows turn positive again and whether Bitcoin can recover the ground lost following the short-lived post-election rally.
