More Than $500 Million Exits U.S. Spot Cryptocurrency Funds

Key Facts

U.S. spot cryptocurrency funds recorded net outflows of more than $500 million on Thursday, November 5, according to a report published by The Block, during a session in which cryptocurrency and technology markets fell broadly. The report said total net outflows from major U.S. funds exceeded $1.1 billion from the start of the week through the time it was published on Friday, November 6. The published figures cover U.S. spot funds and the specific periods for each, while the report does not provide reliable verification of the weekly figure of $1.7 billion cited in the news account. Session data show that market pressure coincided with large withdrawals from Bitcoin and Ether funds, but do not establish that those withdrawals alone caused the weekly total. The outflows came as digital assets and technology stocks declined, according to the report.

Fidelity’s FBTC led Thursday’s outflows, with net withdrawals of $199.9 million, followed by BlackRock’s IBIT with outflows of $105 million, then Grayscale’s GBTC with outflows of $49.9 million, according to data compiled by The Block. These figures show how part of the outflows was distributed among three funds, while the session’s combined total remained above $500 million. In the same asset market, Bitcoin fell 5.6% on Thursday, after erasing more than 4% in initial gains the previous day. Ether also fell 7.8% on Thursday, and the GMCI 30 index declined 6.4%, according to the report. The price declines coincided with the session’s outflows, but the report did not attribute the price moves to any particular fund.

In a later development, U.S. spot Bitcoin funds recorded net outflows of $411.9 million on Friday, November 6, extending withdrawals for a second consecutive session, according to flow data reported by Investing.com. Investors withdrew $403 million from BlackRock’s IBIT in that session, while $42.8 million flowed into Fidelity’s fund, offsetting part of the outflows. Net outflows from U.S. Bitcoin funds totaled about $1.28 billion in November through Friday’s close, with Wednesday the only session with positive flows during the month up to that point. These figures cover Bitcoin funds and the period through Friday; they do not represent total cryptocurrency funds for the full week. The report said Bitcoin had fallen about 5.2% over 24 hours in early Friday trading, after its post-U.S. midterm election rally faded.

The Block report linked the market decline to the loss of initial gains following the U.S. midterm election results, noting that investor concerns included the effects of the results on cryptocurrency and technology markets and the risk of restrictions on the expansion of artificial intelligence infrastructure. Axel Rudolph, senior technical analyst at IG, said Bitcoin “was dragged into the AI selloff as investors rapidly cut risk across technology and cryptocurrency markets.” The analyst’s explanation places the currency’s move within a broader wave of risk reduction, as technology stocks and digital assets fell together. In derivatives trading, liquidations exceeded $1.27 billion over a 24-hour period cited in an Investing.com report published on November 7, including more than $1.1 billion in bullish bets. The report said forced selling increased volatility as traders reduced their leveraged exposure.

Investing.com reported that $80,000 remained a nearby recovery level in trader estimates published on November 7, while $73,000 was cited as a potential downside level. The report linked the immediate test to whether Saturday’s rebound could hold and whether ETF flows would reverse. These levels were cited in the report as markers traders were watching, not as an independent forecast of the price path. Continued withdrawals documented through Friday also provide context for assessing flows after Thursday’s session, without proving the direction of subsequent sessions on their own. Friday’s figures and the developments cited on Saturday came after Thursday’s session, when net outflows from U.S. spot funds exceeded $500 million.