Bitcoin ETFs posted $116.8 million in inflows on US election day, despite Bitcoin’s surge to $75,000.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
As US election concerns rise, institutional investors pulled an estimated $116.8 million from spot Bitcoin exchange-traded funds (ETFs) on November 5, marking one of the largest withdrawal days for the investment vehicles.
Surprisingly, despite the wave of outflows, Bitcoin BTC $99 236 24h volatility: 1.6% Market cap: $1.96 T Vol. 24h: $183.81 B price surged to an all-time high, reaching approximately $75,000. This market movement reveals a complex shift in investor sentiment: while some remain cautious about Bitcoin ETFs, a growing number are embracing BTC as a safeguard against political and economic uncertainties.
According to data from leading ETF tracking platform SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) saw $44.2 million withdrawn on Tuesday, making it the fund’s highest single-day outflow since its launch in January.
Up until this point, BlackRock’s crypto-focused ETF had generally attracted inflows, with only five other outflow days since inception. The fund’s last notable outflow was on October 10 when investors pulled out $10.8 million from the investment vehicle.
Following BlackRock, Fidelity’s Wise Origin Bitcoin Fund (FBTC) posted the day’s second-highest outflows, losing $68.2 million. Other ETFs also saw notable withdrawals, including ARK Invest and 21Shares’ ARKB, which recorded $12.5 million in outflows, as well as Franklin Templeton’s EZBC and VanEck’s HODL, which saw outflows of $6 million and $3.9 million, respectively.
While most of the 11 Bitcoin spot ETFs posted significant outflows, only Bitwise’s Bitcoin ETF (BITB) registered a rare inflow of $19.3 million on Tuesday, suggesting that some investors are positioning themselves for a long-term hold on Bitcoin.
Other funds, such as Grayscale’s Bitcoin Mini Trust (BTC) and WisdomTree Bitcoin Trust (BTCW), saw zero interactions from institutional investors.
Meanwhile, the election’s influence on the crypto market has left some experts pondering the potential regulatory ripple effects. On November 5, Nate Geraci, president of the ETF Store, remarked that while election outcomes often receive heavy emphasis in investment circles, the real factor to watch may be regulatory shifts, particularly within the Securities and Exchange Commission (SEC).
According to him, new leadership could either accelerate or slow down innovation in the crypto ETF space, noting that “a bipartisan, comprehensive crypto framework” would ultimately be ideal for sustained progress. Regardless of the election’s outcome, Geraci suggested it’s highly probable that regulatory dynamics will influence the pace of crypto ETF developments moving forward.
“Nobody knows for sure how this all might play out–and the best longer-term solution is the implementation of a bipartisan, comprehensive crypto framework– but it seems highly likely this election will affect the speed of crypto ETF innovation one way or another,” he said.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
