TL;DR

Bitcoin ETFs in the U.S. saw substantial outflows of $541.1 million on November 4, 2024, marking the second-largest single-day outflow on record, just before the U.S. presidential election.
The significant outflows reflect market caution as Bitcoin’s price dipped to $68,000, with traders concerned about election-driven volatility and political dynamics.
Among Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust ETF reported positive inflows, while others like Fidelity’s Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF faced significant outflows.

Bitcoin ETFs (exchange-traded funds) in the United States experienced substantial outflows on November 4, 2024, just one day before the highly anticipated U.S. presidential election.

According to data from Farside, 11 spot Bitcoin ETFs recorded net withdrawals totaling $541.1 million, marking the second-largest single-day outflow on record. The biggest day for withdrawals was May 1, when these ETFs had $563.7 million pulled out after Bitcoin’s price fell by 10.7% in just a week.

Market Reactions and Volatility

The significant outflows reflect broader market caution as Bitcoin‘s price has dipped 4.6% over the past week and 1.7% in the last 24 hours, hovering around $68,000. The retreat by traders underscores concerns about market volatility ahead of the election, with Bitcoin prices highly responsive to political dynamics.

Recent polling data shows a close race between Kamala Harris and Donald Trump, with Harris holding a slight 1.2-point lead as of November 4, according to FiveThirtyEight.

Bitcoin ETF Performance and Inflows

Among the Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only fund to report positive inflows, attracting $38.4 million. In contrast, several other Bitcoin ETFs faced significant outflows, led by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw $169.6 million pulled, and the ARK 21Shares Bitcoin ETF (ARKB), which lost $138.3 million.

Grayscale’s Bitcoin funds also recorded notable outflows, with $63.7 million exiting the Grayscale Bitcoin Trust (GBTC) and an additional $89.5 million leaving its smaller counterpart.

Election Impact on the Bitcoin Market

The upcoming U.S. presidential election has added a layer of uncertainty to the crypto market. On crypto betting platform Polymarket, Trump’s odds have fluctuated sharply, dropping from 67% on October 30 to a low of 53.8% by November 3 before rising again to just above 59%.

Analysts suggest that the Republican candidate’s pro-crypto stance has led to his popularity among crypto investors, with speculation that a Trump victory could potentially propel Bitcoin prices to $100,000.

The surge in Bitcoin ETF outflows ahead of the U.S. presidential election highlights the market’s sensitivity to political dynamics and the broader economic environment.

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Filed under: News - @ November 5, 2024 12:24 pm