Record Outflows Hit U.S. Bitcoin ETFs as Investors Brace for Election Uncertainty
On Monday, U.S. spot Bitcoin ETFs experienced a substantial pullback, with $541 million withdrawn—marking their heaviest daily outflow since May 1 and the second-largest since these funds began trading in January.
This dip follows a massive influx of $2.22 billion into these funds the previous week, one of their most significant weekly gains.
Analyst Rachael Lucas from BTCMarkets observed that, following such a strong inflow, some profit-taking was expected as investors recalibrate their positions amid potential market swings. Many investors appear to be adjusting in light of upcoming U.S. election results and increased global policy uncertainties, which are likely fueling a cautious market sentiment.
Eight Bitcoin ETFs recorded outflows on Monday, led by Fidelity’s FBTC, which lost $169.6 million, marking its second-largest daily outflow since launch, as reported by SoSoValue. Ark and 21Shares’ ARKB ETF saw $138.26 million in outflows, Bitwise’s BITB lost $79.84 million, and Grayscale’s GBTC along with its Mini Bitcoin Trust experienced combined outflows nearing $153 million. Other funds managed by Franklin Templeton, VanEck, and Valkyrie also saw investor withdrawals.
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In contrast, BlackRock’s IBIT fund, the largest U.S. spot Bitcoin ETF by assets, was the sole fund to post positive inflows on Monday, attracting $38.42 million. The collective trading volume for all 12 Bitcoin ETFs reached approximately $2.22 billion, down from $3.09 billion on Friday, with a total cumulative inflow of $23.61 billion.
Lucas noted that ETF flow patterns could shift with the election’s outcome. Positive signals from a crypto-supportive political environment might revive inflows and boost sentiment, while a regulatory-heavy stance, particularly if Democrats lead, could prompt further cautionary outflows. Bitcoin’s price has hovered near $68,500 in the past day, awaiting both the election results and the upcoming Federal Reserve meeting.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
