Bitcoin News Today: Institutional Investors Shift to Solana While Bitcoin ETFs See $151M Withdrawn
- Crypto ETFs saw $491M net inflows last week, reversing months of outflows as Solana and Ethereum products gained traction amid market corrections. - Bitcoin ETFs recorded $151M outflows on Nov 24 but ended the week with $225M inflow, signaling tentative optimism after four weeks of redemptions. - Ethereum ETFs attracted $96.67M on Nov 24 led by BlackRock's ETHA, while Solana's $57.99M inflow highlighted institutional confidence in its blockchain speed and tokenization potential. - Divergent flows reflect
Crypto ETF Market Sees Dramatic Reversal in Investor Activity
Last week marked a notable change in the crypto ETF landscape, as these funds attracted $491 million in net investments following a prolonged period of withdrawals, according to several industry analyses.
This turnaround occurred despite continued outflows from Bitcoin and Ethereum ETFs. In contrast, products tied to Solana and Ethereum drew fresh capital, reflecting a shift in investor preferences during a broader market correction. The differing results among these ETFs suggest that both institutional and retail investors are increasingly diversifying their portfolios.
Bitcoin ETF Trends: Outflows and a Glimmer of Optimism
On November 24, spot Bitcoin ETFs experienced net withdrawals totaling $151 million, marking the fourth week in a row of outflows, which have now reached $1.94 billion, based on CoinShares data. However, the week ended on a positive note, with $225 million flowing back into Bitcoin ETFs on the final trading day. James Butterfill, Head of Research at CoinShares, described this inflow as the third-largest in the past ten years, though he noted that assets under management for Bitcoin ETFs have dropped by 36% since the outflow trend began.
Ethereum ETFs Attract Capital Amid Price Weakness
Ethereum ETFs stood out by securing $96.67 million in net inflows on November 24, with BlackRock’s ETHA product accounting for $92.61 million of that total. This influx contrasted with Bitcoin’s ongoing outflows, as investors took advantage of lower Ethereum prices. Despite a 7.3% decrease in Ethereum ETF assets under management for the week, a $57.5 million inflow on Friday helped offset some losses. Analysts point to Ethereum’s robust technical foundation and its expanding role in decentralized finance (DeFi) as key drivers behind this renewed interest.
Solana ETFs Lead the Pack
Solana ETFs emerged as the top performers, bringing in $57.99 million in new investments on November 24. Bitwise’s BSOL fund was particularly notable, receiving $39.5 million in a single day—the third-largest daily inflow since its debut in October. Over the past three weeks, Solana ETFs have amassed $369 million in total inflows, defying the broader market’s downward trend. This surge is seen as a vote of confidence in Solana’s fast blockchain technology and its potential for innovative projects like xStocks, which enables U.S. equities to be traded on the Solana network.
Strategic Shifts and Market Outlook
The contrasting flows among crypto ETFs highlight a strategic shift in the market. While Bitcoin and Ethereum funds continue to face redemption pressures, investors are increasingly turning to alternative assets like Solana, attracted by their lower prices and growth prospects. CoinShares’ Butterfill observed that the last week of November showed “early signs of improving sentiment,” though overall caution persists.
Looking forward, the strong inflows into Ethereum and Solana ETFs may indicate a broader change in institutional strategies. Some analysts believe Solana’s continued strength could cement its reputation as a leading digital asset, even as risk appetite diminishes. Meanwhile, the ongoing withdrawals from Bitcoin ETFs point to lingering concerns about the macroeconomic environment and future Federal Reserve actions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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