Bitcoin ETFs See Heavy Outflows but Demand Remains Intact, Says Nansen Analyst

Spot Bitcoin ETFs are on track for their worst month of net outflows since launching in January, sparking renewed debate over whether demand for the flagship products is faltering.

With BTC trading near a seven-month low and BlackRock’s IBIT alone seeing roughly $2.47 billion in redemptions so far this month, the narrative that the ETF bid has “dried up” is gaining traction across markets.

But according to Nicolai Søndergaard, Research Analyst at on-chain analytics firm Nansen, the recent wave of outflows reflects classic bear-market psychology rather than a fundamental collapse in investor appetite. On-chain activity, he argues, paints a more balanced picture of how traders are positioning in the current environment.

ETF Outflows Track the Market’s Decline

Søndergaard says the downturn in ETF flows is a direct consequence of falling prices rather than a loss of long-term confidence.

₿ Bitcoin spot ETFs witnessed a total net outflow of $903 million on November 20, while Ethereum ETFs bled $262 million in outflows. #BitcoinETF #EthereumETF #ETFOutflowshttps://t.co/YpQ3VT1CgN

— Cryptonews.com (@cryptonews) November 21, 2025

“The reason for these outflows from ETFs is quite simple. The market is going down lately, and as such, it is expected that ETFs see outflows as people want to take their money out of the market,” explains Søndergaard.

Historically, ETF flows tend to exaggerate directional moves: strong inflows during rallies and sharp redemptions when prices soften. With Bitcoin now trading at multi-month lows, the same pattern is playing out again.

He notes that flows will depend heavily on broader macroeconomic conditions—particularly monetary policy and global liquidity. A shift in either direction could pull ETF flows back into positive territory.

“Depending on where the market is going, which would likely depend on broader macro factors and policies, ETF flows will continue to go out or come back if markets turn for the better,” adds Søndergaard.

Solana ETFs Show Small but Steady Inflows

Despite the downturn in Bitcoin products, enthusiasm has not disappeared across the board. Søndergaard points to ongoing, albeit modest, inflows into Solana ETFs as evidence of a selective risk appetite.

“Solana is seeing inflows indeed, but they are still small in comparison. With that said, it does seem to indicate some sort of risk appetite and willingness to have exposure to not just BTC and ETH but other assets as well through ETFs.”

While the amounts are far smaller than flows around BTC and ETH, the direction suggests investors are still allocating to higher-beta assets even as macro conditions tighten.

On-chain Data Shows Mixed Signs, Not Panic

On-chain activity offers a more nuanced view of investor behaviour. Nansen’s data shows top profit-and-loss wallets continuing to accumulate a range of tokens, indicating pockets of conviction despite the broader downturn.

At the same time, some smart-money addresses have rotated into stablecoins—a move often seen during periods of uncertainty.

“This is something that was seen already a while ago, where people were just trying to earn yield on their stables while markets were uncertain,” writes Søndergaard.

While global liquidity pressures have contributed to negative price action, Søndergaard stresses they are not the sole driver. The broader picture remains one of caution, not capitulation.

As Bitcoin heads into the final weeks of November, ETF flows remain negative—but the data suggests investors are repositioning, not abandoning the market.