Citigroup: Bitcoin ETF Sees Net Outflow of $1 Billion, Price Drops by Approximately 3.4%

On November 24th, the Bitcoin Exchange-Traded Fund (ETF) is currently witnessing the most significant monthly fund outflows in nearly two years, which is adding more pressure to the already weak crypto market. Bloomberg compiled data indicates that investors have withdrawn $3.5 billion from U.S.-listed Bitcoin ETFs so far in November. This amount is nearly equivalent to the record $3.6 billion outflow set in February, which was the highest monthly outflow in history. BlackRock's Bitcoin fund, IBIT, accounts for approximately 60% of the total assets of such funds. In November, this fund recorded $2.2 billion in redemptions. If there are no substantial inflows in the coming days, it will mark its worst monthly performance. Citigroup's research team quantified this phenomenon. For every $1 billion (net) outflow from Bitcoin ETFs, the price drops by about 3.4%, and vice versa. Citigroup analyst Alex Saunders has set a year-end bearish target of $82,000 (assuming zero inflows). The actual outflow scale has already reached billions of dollars, suggesting further downside potential. Bloomberg Intelligence's senior ETF analyst, Rebecca Sin, pointed out that with the continuous decline and increased volatility of the market, especially in conjunction with the current trend in gold, outflows may continue. She also revealed that some of the withdrawals were from hedge funds unwinding a popular strategy called "basis trading", which profits from capturing the spread between the spot and futures markets. Some institutions also use ETFs to profit from cryptocurrency volatility or hedge derivative short positions.