Bitcoin-linked ETFs recorded approximately $578 million in outflows on Tuesday, marking their largest single-day withdrawal in recent weeks, while Ethereum ETFs saw nearly $220 million in redemptions. Solana ETFs attracted around $15 million in inflows during the same session, extending their streak to six consecutive days of positive flows amid tightening global liquidity conditions.

Canada's 2025 federal budget introduced legislation to regulate fiat-backed stablecoins. The framework will require issuers to maintain adequate reserves, establish redemption policies, implement risk management systems, and protect user data. The Bank of Canada will retain $10 million from its Consolidated Revenue Fund during fiscal 2026-27 to administer the program, with subsequent annual costs of $5 million funded through issuer fees.

Spot Bitcoin and Ether exchange-traded funds recorded their fifth straight day of withdrawals on Tuesday, with combined outflows totaling $785 million. Bitcoin ETFs saw $566 million in net redemptions—the largest single-day exit since mid-October—while Ether funds posted $219 million in outflows, according to Farside Investors.

Canada has introduced a regulatory framework for fiat-backed stablecoins under Bank of Canada oversight, allocating CA$10 million over two years starting in 2026, according to the country's 2025 federal budget released November 4. The initiative includes CA$5 million in annual operating costs to be recovered from regulated issuers. The Retail Payment Activities Act will be amended to bring stablecoin payment service providers under formal supervision.

Spot Bitcoin and Ethereum exchange-traded funds in the United States recorded a combined net outflow of $797 million on Tuesday, according to SoSoValue data. Bitcoin ETFs posted $577.74 million in outflows, marking the largest single-day exit since August 1. Ethereum ETFs saw $219.37 million leave the funds during the same period.

Bitcoin dropped to an intraday low of $100,050 on Tuesday while Ethereum fell below its January 1 opening price of $3,285, wiping out year-to-date gains. Major smart contract platforms including BNB Chain and Solana declined over 7.8% amid broader market weakness. The selloff triggered $1.37 billion in leveraged liquidations across the sector.

Cryptocurrency markets declined amid weakening macroeconomic conditions, with Bitcoin falling 0.9% alongside traditional benchmarks. Bitcoin miners IREN and Cipher Mining posted substantial gains following announcements of high-performance computing agreements with Microsoft and AWS valued at $9.7 billion and $5.5 billion respectively. The deals highlight bitcoin mining companies' pivot to AI infrastructure hosting partnerships with major technology firms.

Bitcoin dropped 2.5% to $103,952 on Tuesday as investors pulled back from risk assets amid mounting concerns over artificial intelligence stock valuations. Ether declined 2.5% to $3,503, bringing its two-day losses to over 10%. A $100 million security breach at Ethereum-based protocol Balancer added to selling pressure.