$6 Billion Meltdown: The Crypto ETF Crash Wall Street Didn't See Coming

Core Insights - U.S. spot crypto-ETFs, particularly Bitcoin ETFs, are experiencing significant drawdowns, with billions lost in fund flows over a short period [1] Fund Performance - U.S. spot Bitcoin ETFs recorded approximately $869.9 million in net outflows on November 13, marking the second largest single-day outflow since inception [2] - Total redemptions from spot Bitcoin funds in November have exceeded $3.7 billion, making it the worst month for Bitcoin ETFs to date [2] - The overall crypto ETF market has seen $6 billion in losses in November, with days remaining in the month [3] Price Impact - Bitcoin's price has declined sharply by 21% month-to-date, reflecting a risk-off sentiment among investors as large volumes exit the market [4] Major Fund Withdrawals - iShares Bitcoin Trust (IBIT) experienced withdrawals of about $523 million on November 18, the largest one-day drawdown since its launch [5] - IBIT has lost approximately $2.2 billion in November, the largest monthly outflow on record for the fund [6] - Other spot Bitcoin ETFs, including Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust (GBTC), have also reported significant net outflows [6] Specific Fund Data - FBTC saw close to $120 million in outflows on a particularly concerning day in November, while GBTC experienced over $318 million in outflows [7] - Cumulatively, the outflows across 11-12 widely followed funds in November represent some of the worst performance in the ETF space [7] Market Mechanics - Sustained withdrawals from large funds like IBIT and FBTC can lead to forced sales of underlying Bitcoin holdings, as ETFs must provide cash to withdrawing investors [7]