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The crypto fund market has taken an unexpected turn after a period of heavy losses. While large amounts previously left the sector, the figures suddenly turned green at the end of the week. This is remarkable, as the market is in the midst of a period of enormous volatility.
Large Inflow After Red Numbers #
On Friday, November 21, Bitcoin funds managed to attract $238 million in new capital. This stands in stark contrast to the day before when over $900 million flowed out of the funds. This was the reddest day of November and one of the heaviest since the introduction of Bitcoin funds in early 2024.
BlackRock’s exchange-traded fund IBIT led the recovery with $108 million in inflows. BITB, ARKB, and BTCO also added positive amounts. Even the much-discussed GBTC, which had been under heavy outflow pressure for a long time, recorded $61.5 million in inflows.
The turnaround came a day after virtually all providers took hard hits. IBIT lost $355.5 million on Thursday, FBTC saw $190.4 million leave, and GBTC gave up $199.4 million. Such figures show that the funds can quickly turn in the right direction again.
Ethereum funds also finally showed recovery after eight consecutive days of outflows. On Friday, $55.7 million came in, mainly thanks to Fidelity’s FETH, which attracted $95.4 million. Solana performed strongly again and has now seen inflows for ten days in a row. In total, the five Solana funds have raised $510 million since their launch, with BSOL as the clear leader.
Many Bitcoin Investors Still in the Red #
Due to the recent drop in Bitcoin below $89,600, many investors in Bitcoin funds are now, on average, in the red for the first time. This level is considered the average entry price of the largest funds, meaning recent buyers are now at a loss.
Analyst Sean Rose calls this an important signal that sentiment has cooled. Large funds also saw outflow days, but according to Vincent Liu of Kronos Research, long-term investors remain calm and are mainly choosing caution in this market.
The recovery gives the market some breathing room, but uncertainty remains high. The coming weeks will show whether this is a real trend reversal or just a short-lived rally.