Bitcoin ETFs Record First Major Inflow After Weeks of Heavy Outflows

Bitcoin exchange-traded funds posted their first significant inflow in weeks on Friday, bringing temporary relief to a market battered by sustained capital exits. The funds recorded net inflows of $238 million, marking a potential turning point after November alone saw approximately $3.5 billion withdrawn from crypto investment products.

The development comes as Bitcoin trades at around $84,068, representing a 23% decline over the past month. The digital asset has fallen nearly 30% from its October peak, pushing year-to-date returns into negative territory. The broader cryptocurrency market capitalization dropped below the $3 trillion threshold, declining an additional 2% in the previous 24 hours.

BTC price action in the last month, Source: CoinMarketCap

Fidelity and Grayscale Drive Recovery

Fidelity's FBTC emerged as the leading performer in Friday's session. The fund attracted $108 million in fresh capital, bringing its total net inflows to $11.8 billion since inception. Grayscale's Bitcoin Mini Trust contributed $84.9 million to the rebound, while the legacy GBTC product added $61.5 million.

BlackRock's IBIT stood out as the session's outlier. The fund recorded a $122 million outflow despite maintaining its position as the industry leader with $62.7 billion in cumulative inflows. IBIT has historically served as a consistent destination for institutional capital throughout the ETF lifecycle.

The Friday inflows represent a sharp reversal from earlier in the week. Bitcoin ETFs experienced one of their worst single-day performances on record, with nearly $1 billion exiting the products. BlackRock's IBIT alone shed $355 million during that session, followed by approximately $200 million each from GBTC and FBTC.

Market Liquidations Reach $630 Million

The cryptocurrency derivatives market remains highly volatile. Data from CoinGlass reveals that over 205,000 traders faced liquidations in the past 24 hours. Total liquidated positions reached $630 million, with long positions accounting for $413 million or 65% of the total.

The largest single liquidation occurred on Binance. A BTC/USDT position valued at $16.5 million was forcibly closed as prices moved against the trader's position. The dominance of long liquidations indicates that many market participants anticipated a price recovery that failed to materialize.

Weekly performance metrics paint a challenging picture. Bitcoin declined more than 12% over the past seven days. During the same period, Bitcoin ETFs shed $1.22 billion in assets under management. The consecutive weeks of outflows have raised questions about institutional appetite for cryptocurrency exposure.

Macroeconomic conditions may be shifting in favor of risk assets. The probability of a Federal Reserve interest rate cut in December surged to 69% from just 39% one day earlier. New York Fed President John Williams indicated that rate reductions could arrive ”in the near term” without compromising inflation targets.