Bitcoin ETFs finally caught a wind on Friday after weeks of relentless outflows. The crypto funds posted an inflow of more than $238 million, according to SoSoValue data. It turns out to be the first meaningful sign of stabilization after a brutal stretch. As of now, November has seen around $3.5 billion flowing out of these funds.
The global crypto market cap dipped by another 2% in the last 24 hours while losing its crucial mark of $3 trillion. This comes as Bitcoin is in a freefall, dipping back to the $80,000 region. BTC price is down by 23% over the last 30 days, leading its year-to-date (YTD) returns into negative territory.
FBTC leads Bitcoin ETF comeback
Data shows that Fidelity’s FBTC led the rebound for BTC ETFs. It pulled in $108 million in the last trading session to lifting its net inflows to $11.8 billion. Grayscale’s newer Bitcoin Mini Trust followed the trend with $84.9 million inflow. Grayscale’s GBTC raked in $61.5 million in the same period.
BlackRock’s IBIT was the lone major laggard in the race as it logged a $122 million outflow. IBIT has been the steady inflow magnet and remains dominant overall with $62.7 billion in cumulative inflows since launch.
Bitcoin ETFs inflow. Source: SoSoValueThe modest return of capital comes at a very crucial moment for crypto markets. Bitcoin remains down nearly 30% from its October peak, and ETF flows have become one of the market’s most-watched sentiment indicators.
BTC price is down by over 12% in the last 7 days, following the line, BTC ETFs have lost $1.22 billion in the period. After a minor recovery, Bitcoin is trading at an average price of $84,089 at press time.
The latest drop in crypto ETFs has been a warning sign for investors as they pulled nearly $1 billion from the funds in a single session earlier this week. It turned out to be the second-largest daily outflow on record across the 12-fund cohort. BlackRock’s IBIT alone posted a $355 million exit, followed by roughly $200 million each from GBTC and FBTC.
$630M wiped out as crypto leverage melts down
Macro uncertainty isn’t helping the market either. Crypto has traded down for more than a month amid fear of overextended AI valuations and hawkish Fed expectations. However, it also includes the hangover from October’s liquidation cascade. The market saw tens of billions erased in leveraged positions.
CoinGlass data shows that the leveraged market is still on fire. Over the last 24 hours, more than 205,000 traders got liquidated. The total liquidations come in at $630 million. The largest single liquidation order took place on Binance of BTC/USDT valued at $16.5 million. However, $413 million (65%) worth of the total liquidated bets turned out to be long positions. This suggests that the traders were hoping for recovery, but the market had different plans.
Still, late Friday brought a rare dose of optimism. The probability of a Federal Reserve rate cut in December jumped to 69%, up from 39% the day before. New York Fed President John Williams fanned those expectations and stated that the rate cuts could arrive “in the near term” without jeopardizing progress on inflation.
Bitcoiners noticed. Social media sentiment sharply turned more upbeat as traders tried to assess whether the worst of the ETF bleed has passed or whether Thursday’s inflow is just a pause in a larger unwind.
For now, the market has one early data point hinting at stabilization. What comes next will depend on whether ETF inflows can stick, and whether macro conditions finally give crypto some breathing room after a month of pressure.
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Source: https://www.cryptopolitan.com/crypto-etf-recovery-begins/
