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Bitcoin Updates: Institutional Interest Fails to Counter Widespread Crypto Market Decline

Bitcoin Updates: Institutional Interest Fails to Counter Widespread Crypto Market Decline

Bitget-RWA2025/11/24 17:26
By:Bitget-RWA

- Bitcoin ETFs face record $3.5B outflows in November as prices drop to $80,657, driven by macroeconomic risks and Fed policy uncertainty. - Franklin Templeton launches XRP ETF amid sector institutionalization, contrasting with $4.9B crypto ETP outflows and DATCo liquidity risks. - Solana shows resilience with $380M ETF inflows and $2.85B revenue, but Ethereum's 45% decline intensifies institutional capital competition. - Market fragility persists as overleveraged crypto treasuries face forced selling, whi

The cryptocurrency sector is facing increasing strain as

ETF withdrawals reach unprecedented highs and broader economic challenges continue to dampen investor confidence. November is shaping up to be the most challenging month ever for U.S.-listed Bitcoin ETFs, , coming close to the previous peak of $3.6 billion recorded in February 2025. BlackRock's IBIT fund alone has experienced $2.2 billion in outflows this month, signaling a widespread retreat from digital currencies.

This wave of selling has coincided with a steep drop in Bitcoin’s value,

— its lowest point since April 2025. Experts point to a mix of influences, such as disappointing U.S. employment numbers, heightened fears of recession, and ambiguity regarding the Federal Reserve’s monetary direction. it harder for the Fed to lower rates, while a robust dollar and tighter financial conditions have pushed investors toward safer assets. Weak economic performance in Europe and Asia has further fueled risk aversion, hitting volatile assets like cryptocurrencies the hardest.

Amid the negative outlook, new crypto investment products have provided a glimmer of hope. Franklin Templeton

on NYSE Arca, joining established players such as Grayscale and REX Shares. , holds tokens and is designed to offer institutional investors access to the fourth-largest digital asset by market value. Franklin Templeton’s launch follows similar moves by Grayscale, which as its fund. These product launches underscore the sector’s ongoing shift toward institutional participation, even as volatility persists.

in outflows from crypto ETPs last week, pushing the four-week total to $4.9 billion—marking the third-largest streak of outflows ever recorded. In contrast, with $89.3 million in new investments, largely attributed to strategic purchases by sophisticated traders. Meanwhile, Bitcoin and continued to see significant capital flight, and ETH funds losing $589 million over the same timeframe.

The market’s vulnerability is heightened by unseen risks from highly leveraged digital asset treasury companies (DATCos).

in 2025 to acquire and retain crypto as part of their corporate reserves, are now being forced to sell as Bitcoin’s price drop undermines their financial stability. that the unwinding of these corporate holdings could intensify downward price pressure, especially as liquidity tightens and debts come due.

Solana has emerged as a rare positive in the digital asset landscape, maintaining strength despite the broader downturn.

in annual revenue from trading and network operations, and its ETFs attracted $380 million in inflows within just three weeks of their debut. However, from its August high has intensified the battle for institutional funds, with Solana’s efficiency and scalability making it a strong contender for future growth.

As the crypto sector navigates these headwinds,

. Investors are watching economic indicators closely, waiting for more definitive guidance on Fed actions and inflation. For now, the industry must balance ongoing innovation with systemic risks that could extend the current slump.

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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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