Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded a significant net outflow of $541 million on Monday, the largest daily negative flow since May 1.
Spot Bitcoin ETFs See $541 Million Outflow Amid Pre-Election Market Volatility
This comes on the heels of a massive weekly inflow of $2.22 billion last week, highlighting the fluctuating sentiment among investors as they brace for heightened market volatility ahead of the US election.
“Following last week’s record inflows, some degree of rebalancing is expected as investors take profits and adjust portfolios in anticipation of market volatility,” said Rachael Lucas, a crypto analyst at BTCMarkets, attributing the outflows to strategic rebalancing.
According to Lucas, many investors are adopting a cautious stance due to geopolitical and policy uncertainties surrounding the election results.
Eight spot Bitcoin ETFs saw outflows on Monday, led by Fidelity’s FBTC with $169.6 million in outflows. ARKB, managed by Ark and 21Shares, saw $138.26 million in outflows, while Bitwise’s BITB followed with $79.84 million.
Grayscale’s GBTC and Mini Bitcoin Trust reported total outflows of $153.15 million, while BlackRock’s IBIT ETF added $38.42 million, making it the only fund to see net inflows.
Total trading volume across the 12 Bitcoin ETFs stood at $2.22 billion on Monday, compared with $3.09 billion on Friday, with cumulative net inflows of $23.61 billion.
Lucas suggests that future ETF flows could be heavily influenced by the election results. “If the results point to a crypto-friendly political environment, we could see renewed inflows and an uptick in sentiment,” he added.
Ethereum ETFs were also affected, with a net outflow of $63.22 million marking the largest daily outflow since late September. The largest withdrawals came from Fidelity’s FETH and Grayscale’s Mini Ethereum Trust, while BlackRock’s ETHE was the only Ethereum fund to see inflows totaling $11 million.
*This is not investment advice.
