$6 Billion Meltdown: The Crypto ETF Crash Wall Street Didn’t See Coming

November 27, 2025

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U.S. spot crypto-ETFs, particularly those loaded with Bitcoin (CRYPTO: BTC), are experiencing one of their largest drawdowns on record, with billions of dollars shaved from fund flows in just a few weeks.

According to recent data by SoSoValue, U.S. spot Bitcoin ETFs logged around $869.9 million in net outflows on Nov. 13, the second largest single-day exodus since inception. The outflows have only accelerated. So far in November, the total redemptions from spot bitcoin funds have now crossed $3.7 billion, per SoSoValue data, marking the worst month to date for Bitcoin ETFs.

Also, Bloomberg Intelligence data aggregated by Barchart shows that $6 billion has vanished from the crypto ETF universe in November thus far, and there are still a few days left in the month.

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Ripple effects are beginning to show in Bitcoin’s price action, which is sharply down (21% month-to-date), and investor sentiment is decidedly risk-off as large volumes head out.

One of the biggest casualties has been iShares Bitcoin Trust (NASDAQ:IBIT), the flagship spot-BTC ETF run by BlackRock. On Nov. 18, IBIT saw withdrawals of about $523 million, according to data from Farside Investors, cited by Reuters. This was the largest one-day drawdown since the fund launched.

During the month so far, IBIT is said to have lost approximately $2.2 billion, the biggest monthly outflow from the fund on record, according to data cited by Trading News. Investors seem to be reassessing crypto exposure amid macroeconomic uncertainty and the broader deleveraging cycle.

IBIT isn’t alone. Fellow spot-Bitcoin ETFs such as Wise Origin Bitcoin Fund (BATS:FBTC), Grayscale Bitcoin Trust (NYSE:GBTC), and Bitwise Bitcoin ETF (NYSE:BITB) and have all logged net outflows in recent sessions.

For example, FBTC saw close to $120 million in outflows on that one worrisome day in November, and more than $318 million left GBTC across funds, according to SoSoValue data.

In all, across 11–12 widely followed funds, the cumulative November bleed is among the worst the fledgling ETF space has seen.

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When large funds like IBIT and FBTC see sustained withdrawals, the mechanics of ETF redemptions can create ripple effects. In such institutional redemptions, fund managers may be compelled to sell their underlying bitcoin holdings. This is because when investors withdraw from a spot-Bitcoin ETF, the ETF has to pay them cash. But many spot ETFs don’t sit on cash, they hold actual Bitcoin. Large redemption amounts land directly in the market’s supply, putting pressure on prices.

Also, as funds shrink, so does confidence, which itself may be enough to trigger further selling. The current slump in ETF flows has coincided with BTC sliding from six-figure highs to levels below $90,000.

Not all ETFs are created equal: in rough patches, bigger funds such as IBIT may be more vulnerable simply because there’s more “weight” to sell. Smaller or more diversified crypto/altcoin-focused ETFs might weather volatility better.

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This article $6 Billion Meltdown: The Crypto ETF Crash Wall Street Didn’t See Coming originally appeared on Benzinga.com

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