U.S. spot Bitcoin and Ethereum exchange-traded funds snapped a punishing six-day outflow streak on November 6, attracting a combined $252.5 million in fresh capital even as cryptocurrency prices continued their downward slide. The reversal marks a potential shift in institutional sentiment after nearly $2.9 billion fled the products during the preceding week.
Bitcoin ETFs recorded $240 million in net inflows on Wednesday, according to SoSoValue data, while Ethereum ETFs added $12.5 million. The inflows bring total net assets across all spot Bitcoin ETFs to approximately $135.4 billion, representing 6.7% of Bitcoin's total market capitalization.
BlackRock's iShares Bitcoin Trust (IBIT) led the Bitcoin ETF recovery, attracting $112.44 million in a single session despite the fund experiencing its highest trading volume day at $4.1 billion. The institutional giant's flagship crypto product now holds over $100 billion in assets under management, cementing its position as the largest cryptocurrency ETF globally.
Fidelity Wise Origin Bitcoin Fund (FBTC) followed with $61.64 million in inflows, while ARK 21Shares Bitcoin ETF (ARKB) contributed $60.44 million. Bitwise's Bitcoin ETF (BITB) added a modest $5.5 million. Notably, no Bitcoin ETF reported outflows on Wednesday, marking a rare unanimous show of institutional confidence.
On the Ethereum side, BlackRock's iShares Ethereum Trust (ETHA) dominated with $8 million in inflows, followed by Fidelity Ethereum Fund (FETH) at $4.95 million and Bitwise Ethereum ETF (ETHW) at $3.08 million. Grayscale Ethereum Trust ETF (ETHE) recorded $3.53 million in outflows, while the remaining five Ethereum funds reported neutral flows.
Unprecedented Outflow Streak Reverses
The Wednesday inflows ended what had been a devastating six-day run of institutional withdrawals. Between October 29 and November 5, Bitcoin ETFs hemorrhaged approximately $2.05 billion, while Ethereum ETFs lost $837.66 million in the same period.
The outflow wave reflected broader market weakness following Bitcoin's failure to sustain momentum above its October all-time high of $126,272, reached on October 6. Market analysts attributed the selling pressure to profit-taking after the cryptocurrency's dramatic rally and shifting macroeconomic conditions including concerns about Federal Reserve policy and risk-off sentiment in traditional markets.
Glassnode data revealed that BlackRock's spot Bitcoin ETF experienced its weakest institutional accumulation period since launch, with less than 600 BTC in net weekly inflows over the past three weeks - a stark contrast to the 10,000+ BTC weekly inflows that historically preceded major rallies.
Prices Diverge From Inflow Recovery
Despite Wednesday's positive fund flows, cryptocurrency prices continued their descent. Bitcoin traded at $100,768 as of Thursday, down 2.37% on the day and extending its weekly decline to nearly 9%. The flagship cryptocurrency briefly dipped below $100,000 on November 4 for the first time since late June, triggering significant liquidations across leveraged positions.
Ethereum faced even steeper losses, trading at $3,284 after falling 3.40% in 24 hours. The second-largest cryptocurrency has now dropped approximately 15% over the past week and more than 25% over the past 30 days, significantly underperforming Bitcoin during the recent correction.
Technical Analysts Eye Critical Support Levels
Market technicians are closely monitoring key support zones as both assets test crucial moving averages. Bitcoin is currently testing its 50-week Exponential Moving Average, with analysts warning that a weekly close below this level could signal deeper corrections ahead.
"Everything depends on the weekly close," noted crypto analyst Ted Pillows. "A weekly close above EMA-50 with strong buy volume means Bitcoin has bottomed. A weekly close below EMA-50 means the dump is just the beginning."
For Ethereum, analysts point to the $3,100-$3,200 zone as critical support. "ETH is still hovering around the $3,300 level," Pillows forecasted. "If Ethereum loses the $3,100-$3,200 zone again, expect a correction to new monthly lows."
Technical analysis from CryptoPotato suggests Bitcoin is currently stabilizing above the $100,000-$102,000 institutional demand block, a zone that historically acts as a major pivot point. However, the cryptocurrency needs to reclaim $106,000 as support before confirming a sustainable recovery trajectory.
Final thoughts
The disconnect between positive ETF flows and declining prices reflects the complex dynamics currently shaping cryptocurrency markets. While institutional investors appear to be strategically accumulating during price weakness, broader market factors including risk-off sentiment and concerns about artificial intelligence stock valuations continue to weigh on digital asset prices.
The failure of October's historically bullish seasonality to materialize - marking the first such occurrence since 2018 - has raised concerns about near-term price action. In November 2018, Bitcoin plunged 37% following a similar breakdown in seasonal patterns.
However, some analysts remain cautiously optimistic about longer-term prospects. The 200-day moving average near $110,000 represents a key resistance level that could ease selling pressure among retail investors if reclaimed. Additionally, the tightening supply dynamics from continued institutional accumulation through ETFs - with BlackRock now holding over 800,000 BTC - may provide fundamental support at lower levels.
As November progresses, investors will be watching whether Wednesday's inflow reversal marks the beginning of renewed institutional confidence or merely a temporary reprieve in an ongoing correction. The coming weeks will prove critical in determining whether major cryptocurrencies can maintain key support levels and rebuild upward momentum, or if further selling pressure lies ahead.
