Bitcoin ETFs Bleed Cash While NYSE Bets on Avalanche for Tokenized Stocks

US spot Bitcoin ETFs recorded roughly $201 million in net outflows on Monday, according to Farside Investors data. BlackRock's iShares Bitcoin Trust (IBIT) accounted for about $213 million of redemptions, marking its seventh consecutive session of withdrawals and about $1.66 billion in outflows since October 30. A $22 million inflow into the Morgan Stanley Bitcoin Trust (MSBT) softened the total slightly.

Monday's figure was smaller than the roughly $430 million and $412 million pulled on Thursday and Friday, but the broader picture remains negative. Outflows since November 2 total about $1.5 billion, leaving the funds down roughly $1.1 billion year to date, compared with more than $20 billion of net inflows in each of the past two years.

The divergence with equities is hard to miss. The Nasdaq Composite gained about 2.7% on Monday and the S&P 500 posted its strongest session since April, yet Bitcoin barely moved. It touched a two-month low near $73,500 over the weekend, is on track for a fifth straight weekly loss, and sits roughly 8% below its November 4 high of about $81,100.

Several pressures are stacking up. ETF redemptions reduce spot demand, while miner MARA Holdings disclosed it sold 13,597 BTC for about $1.1 billion over six weeks and plans further sales. Rate expectations add to the caution: Federal Reserve Governor Christopher Waller said he would back a quarter-point hike in December, and traders are awaiting October CPI data. The Crypto Fear & Greed Index improved to 32 but remains in "Fear" territory.

On Monday, Ava Labs announced that Avalanche will provide the core ledger technology for the clearing firm supporting an NYSE-affiliated tokenized securities platform. The design pairs the exchange's existing Pillar matching engine with onchain clearing and settlement, round-the-clock trading and stablecoin-based funding. The selection follows roughly a year of testing by the NYSE and its parent company, Intercontinental Exchange.

The platform is expected to support tokenized stocks and ETFs, including equities issued on multiple blockchains. The AVAX token rose roughly 4% to 8% on the news, depending on the measurement window.

The announcement is a milestone for tokenization, but it is not a finished product. The platform still requires regulatory approvals, including from the SEC, and its timing remains subject to that review. Analysts also note that the link between activity on a dedicated settlement ledger and demand for the public AVAX token is indirect.

Competition is already forming. Nasdaq is developing its own tokenized stock infrastructure with Kraken, and Formation Securities has told the SEC it plans a Solana-based tokenized securities venue targeting early 2027. Avalanche's win is significant, but it does not give any single network control over Wall Street's tokenized assets.

Three items will shape the next few sessions: the October CPI print and the market's reaction, whether daily ETF flows turn positive after seven straight outflow days at IBIT, and any regulatory steps toward approving the NYSE platform. For now, institutional money is cautious on Bitcoin exposure, yet traditional finance keeps moving its core plumbing onchain. This article is for informational purposes only and is not investment advice.