Bitcoin ETFs Suffer Brutal Week as BTC Falls 33% From Highs

Bitcoin investment products just endured one of their harshest stretches since launching nearly two years ago, with U.S. spot ETFs shedding close to $1.2 billion over the past week.

The reversal stands out not only because these funds have typically been a magnet for inflows, but also because the drop coincides with one of Bitcoin’s steepest price slides of 2025.

Despite a brief bounce on Friday, the overall picture remains grim. November’s withdrawals – now approaching $3.8 billion – have almost matched the worst month on record, underscoring how dramatically investor sentiment has shifted.

A Perfect Storm of Macro Pressure and Price Weakness

Bitcoin’s retreat has been relentless. The asset briefly slipped to $82,000, its lowest point since the spring, marking a 33% decline from its early-October peak above $126,000. A mix of factors is driving the pullback:

• Fading expectations of another Federal Reserve interest rate cut this year.
• Renewed anxiety around global economic stability.
• Mounting skepticism about sky-high valuations in the booming AI sector.

Against that backdrop, even the most established ETFs struggled to retain assets. BlackRock’s IBIT alone bled more than $1 billion, while funds from Grayscale and Fidelity saw combined redemptions approaching another $300 million.

Notably, Friday brought a shift in tone. Fidelity’s FBTC logged more than $100 million in new inflows, with several other Bitcoin products also returning to positive territory – a small but welcome pause in an otherwise brutal streak.

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Altcoin ETFs Are Stealing the Spotlight

While Bitcoin funds are seeing money rush out, newly launched altcoin ETFs are having a very different month. Products tied to Solana, XRP, and Dogecoin have started trading with strong momentum, drawing significant capital during their debut weeks.

The standout so far is Canary Capital’s XRP ETF, which pulled in $58 million on launch day – the biggest Day 1 haul of any ETF introduced this year. Bitwise’s Solana Staking ETF (BSOL) is also off to a remarkable start, accumulating more than $660 million since its October debut and going three straight weeks without a single day of outflows.

The U.S. SEC is now reviewing dozens more applications, including multi-asset crypto portfolios and thematic blockchain strategies, suggesting investor demand for non-Bitcoin exposure continues to rise.

History Says Bitcoin Isn’t Done Yet

Despite the turbulence, some analysts are urging caution before calling a long-term top. In a post to X, Bloomberg’s Eric Balchunas reminded followers that Bitcoin ETFs have already weathered multiple sharp drawdowns – only to rebound stronger later.

For now, however, Bitcoin enters the final stretch of the year on shaky footing, with altcoin ETFs unexpectedly becoming the bright spot in an otherwise tense digital-asset landscape.