SUMMARY
- S. spot bitcoin ETFs faced $541 million in outflows on Monday after last week’s significant inflow streak.
- Bitcoin’s price hovers around $68,000 as the market anticipates the U.S. presidential election outcome.
On Monday, there were significant withdrawals of $541 million from U.S. spot bitcoin exchange-traded funds (ETFs), the biggest daily withdrawal since May 1 and the second-highest since the funds’ inception in January. This comes after bitcoin ETFs saw one of the largest weekly net inflows ever last week, totaling $2.22 billion. With the U.S. election results quickly approaching, analysts predict rebalancing as investors take profits and modify their holdings. A cautious “wait and see” strategy has been inspired by the uncertainties surrounding possible governmental changes in the midst of increased geopolitical tensions.
There were net outflows from eight spot bitcoin ETFs. According to SoSoValue data, the highest outflow of $169.6 million was from Fidelity’s FBTC ETF, which saw its second-largest daily outflow since its launch. Furthermore, Bitwise’s BITB experienced outflows totaling $79.84 million, while Ark and 21Shares’ ARKB suffered net outflows of $138.26 million. Outflows totaling $63.66 million and $89.49 million were reported by Grayscale’s GBTC and Mini Bitcoin Trust, respectively. This pattern was followed by additional funding from Franklin Templeton, VanEck, and Valkyrie. The only fund with net inflows of $38.42 million was BlackRock’s IBIT, the biggest spot bitcoin ETF by net assets.
ETF trading activity on Monday was approximately $2.22 billion, which was less than the $3.09 billion on Friday. This brings the entire cumulative net inflows to $23.61 billion. Analysts speculate that the outcome of the election could affect ETF flows. While a more regulated approach, maybe after a Democratic triumph, might encourage additional outflows as investors modify their methods, a pro-crypto administration might spur fresh inflows and positive market mood.
Alongside these bitcoin ETF movements, spot ether ETFs also reported significant outflows of $63.22 million on Monday, their largest since September 23. Fidelity’s FETH and Grayscale’s Mini Ethereum Trust were the main contributors, with outflows of over $31 million each. Grayscale’s ETHE also saw a decrease of $10.8 million, whereas BlackRock’s ETHE was the only ether ETF with net inflows, adding $11 million. Ether ETF trading volumes fell from $169.11 million on Friday to $149.11 million on Monday, with cumulative net outflows reaching $554.66 million.
Bitcoin’s price hovered around $68,000 in the last 24 hours, settling near $68,500. Following the U.S. election, investors will turn their attention to the Federal Open Market Committee meeting, where further economic signals are anticipated.