Biggest Net Outflow Since May: Bitcoin ETFs Lose $541M After Record Inflows
Monday’s $541 million net outflow from U.S. spot bitcoin exchange-traded funds was the biggest daily net outflow since May 1 and the second-largest negative flow since trading started in January. This comes after the ETFs saw one of their biggest weekly net inflows last week, totaling $2.22 billion.
After last week’s record-breaking inflows, some degree of rebalancing is expected, as investors take profits and adjust portfolios in anticipation of market volatility. The timing likely aligns with the upcoming U.S. election results as many market participants adopt a ‘wait and see’ stance amid heightened geopolitical and policy uncertainties.
Rachael Lucas, crypto analyst of BTCMarkets
Bitcoin ETFs Post Mixed Results with Major Outflows—Will Election Results Shift Flows?
Yesterday, there were net outflows from eight spot bitcoin ETFs, with Fidelity’s FBTC registering net outflows of $169.6 million. According to SoSoValue data, Monday was also the second-largest daily net outflow for FBTC since its launch. Bitwise’s BITB experienced net outflows of $79.84 million, while Ark and 21Shares’ ARKB saw net outflows of $138.26 million.
Additionally, net outflows of $63.66 million and 89.49 million were reported by Grayscale’s GBTC and Mini Bitcoin Trust, respectively. On Monday, there were net outflows from Franklin Templeton, VanEck, and Valkyrie funds as well. Yesterday, BlackRock’s IBIT, the biggest spot bitcoin ETF by net assets, saw the only net inflows, totaling $38.42 million.
Moving forward, ETF flows could be influenced by the election outcome. Should results signal a crypto-friendly political environment, we might see renewed inflows and a bullish turn in sentiment. However, if there are signs of increased regulatory scrutiny, particularly following a Democratic win, we could see further outflows as investors respond with caution.
Lucas
Ethereum ETFs Face $63M in Outflows, Marking Largest Single-Day Decline Since September
In the meantime, $63.22 million left spot ether ETFs on Monday, resulting in net outflows. Since September 23, this was the biggest net outflow per day. Grayscale’s Mini Ethereum Trust and Fidelity’s FETH both saw withdrawals of more than $31 million, which were the primary sources of the outflows. Grayscale also had $10.8 million in net outflows from its ETHE. On Monday, the only fund with net inflows was BlackRock’s ETHE, which brought in $11 million.
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