US Bitcoin ETFs Post Second-Largest Outflows On Elections Eve – What’s Next?

The US Bitcoin ETFs hit net outflows of $541.1 million on Monday, marking their second-largest outflows since their launch.

Surprisingly, almost all the Bitcoin ETFs posted net negative flows for the day except BlackRock's IBIT, which saw $38.4 million in inflows. The huge outflows came on the eve of the US presidential election voting.

Meanwhile, the broader crypto market is at a critical juncture as investors seem to slow their engagement.

US Spot Bitcoin ETFs Record $541 Million in Outflows, Marking Second-Largest Outflows

The US spot Bitcoin exchange-traded funds (ETFs) recorded net outflows of $541.1 million. This value marked the second-largest net outflows since their launch in January.

The biggest net outflows occurred on May 1, when the funds saw the exit of about $563.7 million in assets after Bitcoin dipped over 10.7% to hit $60,000.

According to CoinGlass data, eight of the 12 ETFs posted net outflows on Monday. Fidelity's FBTC led the trend with $169.6 million in net outflows, bringing its net inflows since launch to $10.29 billion.

Ark Invest and 21Shares' ARKB and Grayscale's mini Trust fund (BTC) followed with net outflows of $138.3 million and $89 million.

Similarly, Bitwise's BITB, Grayscale's GBTC, and Franklin Templeton's EZBC posted net outflows of $79.8 million, $63.7 million, and $17.6 million. VanEck's HODL and Valkyrie's BRRR posted outflows of $15.3 million and $5.7 million.

However, Invesco Galaxy's BTCO and WisdomTree's BTCW saw zero net flows for the day.

Conversely, BlackRock's IBIT was the only ETF with net positive daily flows. IBIT recorded net inflows of $38.4 million to reach net inflows of $26.17 billion since its debut.

The daily trading volume of all the ETFs as of November 4 amounted to $2.22 billion, while the cumulative net inflows reached $23.61 billion.

US Election Voting Drives Digital Asset Investment Products to Hit $2.2 Billion in Inflows

For the week ending on Friday, November 1, US BTC spot ETFs recorded net flows of $2.2 billion. This figure brought the year-to-date (YTD) inflows to a whopping $29.2 billion.

The impressive weekly inflows pushed the total assets under management (AUM) to over $100 billion, the second-largest record since the ETFs launched in January. The first record of $102 billion was witnessed in early June 2024.

CoinShares Head of Research, James Butterfill, noted that the euphoria surrounding a prospective Republican victory drove the ETF inflows for the week.

Meanwhile, a turn in the polls highlighted a slight drop in Trump's odds. According to data from FiveThirtyEight, Donald Trump and Harris are tied in the polls, but Harris took the lead by 1.2% on November 4.

Similarly, the crypto prediction platform Polymarket saw a sharp shift in the forecast of the outcome of the US presidential elections. On November 3, Trump's winning odds plummeted to a low of 53.8% after reaching a 67% peak on October 30.

As anticipation for who wins the 2024 US election intensifies, the crypto market reflects a cautious investor sentiment, with price drops across top assets today.

Bitcoin trades at $68,828, reflecting a slight decline of 0.16%. It boasts a market cap of $1.36 trillion, with a 59.38% dominance over the altcoins.

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