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Bitcoin Updates: Billions Flow Out of Bitcoin ETFs While Stablecoins Strengthen as Core of Finance

Bitcoin Updates: Billions Flow Out of Bitcoin ETFs While Stablecoins Strengthen as Core of Finance

Bitget-RWA2025/11/23 01:38
By:Bitget-RWA

- BlackRock's IBIT Bitcoin ETF recorded a record $523M outflow, pushing November's total U.S. spot Bitcoin ETF redemptions to $2.96B amid Bitcoin's 30% price drop. - Analysts link the exodus to weak fundamentals and macroeconomic uncertainty, with ETF outflows and long-term holder sales tightening liquidity and eroding investor confidence. - BlackRock filed for an Ethereum staking ETF as stablecoins surge in cross-border finance, processing $9T in 2025 payments while Bitcoin ETFs face sustained outflows an

BlackRock's

exchange-traded funds (ETFs) are experiencing record-breaking cash outflows, with the asset manager's leading (IBIT) on Tuesday, based on figures from Farside Investors and . This represents the largest single-day withdrawal since the fund debuted in January 2024 and for U.S. spot Bitcoin ETFs to $2.96 billion, setting the stage for their worst month to date. alone is responsible for $2.1 billion of these redemptions, as Bitcoin has dropped 30% from its October high.

The heavy outflows have intensified Bitcoin’s challenges, with the cryptocurrency recently falling below a key price threshold, leaving ETF investors collectively at a loss. Experts point to a mix of weak market conditions and broader economic uncertainty as the main drivers behind the withdrawals. "

has reduced liquidity, driving prices down and reflecting eroding confidence," commented Dilin Wu, research strategist at Pepperstone. This pattern is a stark departure from previous years: , with an average gain of 41.22%, according to CoinGlass.

Bitcoin Updates: Billions Flow Out of Bitcoin ETFs While Stablecoins Strengthen as Core of Finance image 0

Even with the ongoing sell-off, some major institutions remain optimistic.

in the months before the recent downturn, increasing its investment in during that time. Still, the overall market mood has become more cautious. Global organizations and governments are continuing to explore digital assets, as shown by El Salvador’s latest Bitcoin purchase and the Czech Republic’s first crypto buy from U.S. ETFs, which are now approaching a possible $3.56 billion in redemptions—surpassing even the weak numbers seen in February.

BlackRock’s recent focus on

could indicate a new direction for the firm. for an iShares Staked Ethereum ETF, suggesting plans to introduce a product that offers staking rewards to investors. This comes as Ethereum-focused funds, including BlackRock’s ETHA, also experience outflows amid market uncertainty. The move fits with industry speculation that the U.S. Securities and Exchange Commission may soon approve staking features for crypto ETFs, a development "the next phase".

At the same time, the conversation around digital assets is shifting. While Bitcoin’s price swings have hurt its appeal for global payments,

for international transactions. In 2025, they processed $9 trillion in payments, an 87% increase from the previous year, as platforms use blockchain technology to cut costs and speed up settlements. , such as the U.S. GENIUS Act and Europe’s MiCA rules, have helped drive adoption, with 88% of banks now seeing stablecoins as a driver of innovation. This marks a clear divide: while Bitcoin ETFs are struggling to hold onto investor funds, stablecoins are establishing themselves in real-time payments, payroll, and remittance services.

Experts remain split on Bitcoin’s short-term outlook. Some, like Geoff Kendrick from Standard Chartered, believe that

in 2025. Others warn that —including uncertainty over U.S. interest rates—will keep many investors on the sidelines through the end of the year. For now, BlackRock’s Bitcoin clients seem to be hoping for a rebound, but the ongoing ETF outflows indicate that Bitcoin’s role in global payments is still far from certain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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