Synopsis: Bitcoin’s sharp drop below $89,600 has pushed spot Bitcoin ETF investors into losses for the first time. Massive fund outflows highlight fading confidence, while Solana ETFs buck the trend with consistent inflows despite crypto market weakness.
Bitcoin’s shine has dimmed again this week. The cryptocurrency’s sharp fall below $89,600 has pushed the average spot Bitcoin ETF investor into the red for the first time since launch. It’s a rough moment for many traders, though long-term investors appear calm.
U.S. Bitcoin ETFs have seen a wave of redemptions since November 12, signaling fading confidence across crypto funds. According to Farside Investors, these funds recorded about $2.33 billion in outflows this month. BlackRock’s iShares Bitcoin Trust (IBIT) led withdrawals, losing nearly $1.26 billion, including a single-day outflow of $463 million.
Other major ETFs, like Fidelity’s FBTC, ARK 21Shares (ARKB), and Bitwise (BITB), also reported steady losses through the week. Monday alone saw combined net withdrawals of $254.6 million. These redemptions mark the fifth straight day of exits, echoing a broader “Painvember” mood in the crypto market.
The average cost basis for all U.S. Bitcoin ETFs sits close to $89,600, per Glassnode. Since Bitcoin dropped below that mark, most investors are technically underwater. Those who entered earlier, when prices were between $40,000 and $70,000, remain comfortably in profit. But recent buyers, many of whom entered near this year’s highs, are facing paper losses.
Ether Joins Bitcoin in the Red
Ether ETFs haven’t fared better. On Monday, these funds posted a combined $182.7 million in withdrawals. BlackRock’s iShares Ethereum Trust (ETHA) suffered the heaviest blow, seeing $193 million withdrawn in a single day. Cumulative outflows so far this month have crossed $500 million, reflecting weak sentiment in large-cap crypto assets.
Ether’s spot price now trades near $3,200, down about 25% this month. Investors appear cautious as broader macro concerns like persistent inflation and delayed rate cuts rattle risky assets. Some traders privately admit this feels eerily similar to last year’s mid-cycle slump.
Market analysts say rate policy and liquidity conditions remain key. Vincent Liu, CIO of Kronos Research, noted that most ETF investors are long-term allocators. “Being underwater doesn’t cause panic exits,” he said, emphasizing that recovery prospects depend on macro easing and improving liquidity flows.
Solana ETFs
While Bitcoin and Ether funds struggle, Solana ETFs continue to attract steady inflows. They’ve logged positive entries every day since their late-October debut. Monday’s trading added another $8.2 million, led by Bitwise’s Solana Staking ETF (BSOL) with $7.3 million and Grayscale’s GSOL with $0.9 million.
Since launch, the three Solana ETFs BSOL, GSOL, and VanEck’s VSOL have collectively pulled in about $390 million. It’s impressive, especially given Solana’s 20% weekly price drop to around $145. The inflows underline institutional interest in Solana’s growing DeFi and token ecosystem. Frankly, it seems investors see Solana as a diversification lifeline amid Bitcoin’s turbulence.
Market Outlook Remains Cautious
Bitcoin has dropped almost 30% from its October high of $126,000 to around $90,000. The broader crypto market has lost about 15% in value this month, with the Fear and Greed Index stuck at “extreme fear.”
Glassnode’s Sean Rose said $89,600 remains a psychological floor. Regaining that level could stabilize sentiment and stem ETF outflows. For now, the market faces tight liquidity and policy uncertainty, both of which may pressure prices further.
Still, history offers perspective. Similar pullbacks in 2024 turned into massive inflows months later, driving Bitcoin to new highs. Long-term investors may again view this phase as a test of patience rather than panic.
After all, the story of crypto has always been one of deep drawdowns followed by surprising resilience and that cycle, as many believe, isn’t quite over yet.
Written By Fazal Ul Vahab C H