The cryptocurrency market took another hit this week as Bitcoin plunged below $100,000 for the third time in November on Thursday.
Notably, the latest crash caught participants off guard as many had hoped the US government reopening might trigger risk appetite and lift crypto prices.
Bitcoin is trading at $96,480, and the prevailing investor caution signals lingering uncertainty.
Crypto exchange-traded funds (ETFs), which serve as the gauge/indicator for institutional appetite, confirm prevailing hesitancy.
Precisely, Bitcoin ETFs have seen immense withdrawals, indicating that even market movers are reducing their exposure amid prolonged volatility.
On the other hand, altcoin exchange-traded funds held steady, reflecting optimism since the October 28 Solana, Litecoin, & Hedera ETF launches, and yesterday’s Canary Capital’s XRPC.
Bitcoin ETFs’ momentum dwindle
The cryptocurrency industry has never been the same since the October historic crash.
Institutional players have adopted a risk-off sentiment since then, as testified by US-listed Bitcoin exchange-traded funds.
SoSoValue data shows these products have recorded roughly $3.43 billion in outflows since October 10, with yesterday’s (November 13) $869 million marking the second-largest exit BTC ETFs have ever seen.
What’s fueling the massive withdrawals? First and foremost, profit-taking after Bitcoin’s latest rally to all-time highs of north $126,000.
Secondly, market uncertainty is discouraging investors.
The much-awaited US reopening turned out to be a sell-the-news event as long positions face brutal liquidations.
Also, the missing October economic data (CPI and jobs) report magnified investor worries about a deeper economic crisis.
Indeed, the current financial landscape makes it hard to guarantee another rate cut next month, a decision that experts believe would shape the broader markets’ trajectory in the coming times.
Altcoin ETFs’ resilience as XRP joins the race
While blue-chip Bitcoin trackers struggled, altcoin ETFs attracted substantial capital, a trend that began after the historic Solana, Litecoin, and Hedera exchange-traded funds launch on October 28.
Meanwhile, the newly launched Canary Capital’s XRP ETF stole the show this week, delivering the strongest first-day performances after its November 13 debut.
Bloomberg’s ETF analyst Eric Balchunas revealed that XRPC trading volume surpassed $58 million.
It presented the most robust performances of 2025.
XRP is still anticipating more ETFs from top players like Grayscale, Bitwise, and Franklin Templeton in the next two weeks.
The impressive launch reflects unwavering retail and institutional demand for Ripple’s native token, now that there’s a regulated exposure.
Furthermore, Bitwise and Grasycale’s Solana ETFs have seen positive inflows since launching, totalling approximately $370 million.
Others, including Trusts tracking Hedera and Litecoin, have witnessed slow traction, but investor interest remains noticeable.
Cryptos’ two emerging paths
The current ETF flows data confirms a visible divergence in the digital assets sector.
Bitcoin exchange-traded funds record substantial redemptions amidst profit-booking and short-term uncertainty.
On the other hand, altcoin ETFs, including XRP and Solana, witness massive investment, signaling a shift in portfolio diversification.
Enthusiasts will watch to see whether cryptocurrency flows will finally rebalance amid improving broader market conditions.
Nevertheless, we can conclude one thing: institutional and retail investors aren’t exiting digital assets; they’re just repositioning.
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