Net withdrawals from U.S. spot Bitcoin exchange-traded funds (ETFs) excluding the iShares Bitcoin Trust (NASDAQ:IBIT) dropped by 97.3% on Friday, according to data from Farside Investors. The total outflow for the group declined by just 4.3% over the same period, underscoring a dramatic shift in where investor redemptions are occurring.
Data Highlights
On November 6, net outflows from all spot Bitcoin funds totaled $411.9 million, down from $430.2 million the previous day. Excluding IBIT, net withdrawals fell to $8.9 million from $325.2 million. In contrast, IBIT's outflows rose sharply to $403.0 million from $105.0 million. This divergence means the headline total masks a significant concentration of selling in the largest fund.
Weekly and Year-to-Date Trends
The weekly outflow remained substantial, with The Block's analysis of SoSoValue data reporting approximately $1.28 billion in net withdrawals for the week. Wednesday was the only day with net inflows. Year-to-date, the funds have seen net outflows of $914.1 million as of November 7.
Gross vs. Net Flows
Friday's gross and net figures measure different aspects of fund flows. The Block's report implies combined gross withdrawals of $454.7 million from funds with net outflows. Fidelity's fund attracted $42.8 million in inflows, partially offsetting these withdrawals and reducing the group's net outflow to $411.9 million. IBIT accounted for 88.6% of gross withdrawals and 97.8% of the net total, though these percentages use different denominators and do not capture all investor selling.
IBIT Fund Details
IBIT's November 6 fund page listed net assets at $60.70 billion and shares outstanding at 1.416 billion. These balance-sheet metrics are separate from daily subscription and redemption activity. A decline in asset value can also reflect Bitcoin's price movements. IBIT closed Friday at $42.88, compared with a net asset value of $42.87, a premium of approximately 0.02%.
The trust aims to track Bitcoin's price, using the CME CF Bitcoin Reference Rate (New York variant) as its benchmark. The annual sponsor fee is 0.25%. Fund shares provide price exposure without requiring shareholders to manage Bitcoin custody directly.
Regulatory Context and Risks
The SEC approved spot Bitcoin product listings in January 2024, but its approval statement emphasized that exchange protections and disclosure requirements do not constitute an endorsement of Bitcoin or the products' custody arrangements. Bitcoin products remain exposed to custody failures and market manipulation despite listing safeguards.
Flow providers can revise their daily estimates, and the concentration calculations are based on rounded published inputs covering only two sessions. There is no evidence yet that the shift will persist.
Looking Ahead
The next U.S. trading session is Monday, November 9. Fund-level data will reveal whether withdrawals remain concentrated in IBIT. Fidelity provided a counterweight on Friday, attracting $42.8 million after losing $199.9 million on Thursday. Market participants will be watching closely to see if this trend continues or reverses.
