Spot Bitcoin ETFs See $116.8M in Outflow as Investors Turn Cautious on Election Day

Spot Bitcoin exchange-traded funds (ETFs) saw net outflows totaling $116.8 million in a cautious response to the U.S. election day.

Fidelity’s Wise Origin Bitcoin Fund led the outflows for the day, with a net exit of $68.2 million, according to data from SoSo Value.

Meanwhile, the Bitwise Bitcoin ETF was the only spot fund to record an inflow, gaining $19.3 million.

BlackRock’s ETF Sees Outflow for Sixth Time Since Launch

BlackRock’s iShares Bitcoin Trust recorded an outflow of $44.2 million on November 5, marking the sixth time since its January launch that the ETF has experienced a net outflow.

The caution among institutional investors appears linked to the uncertainty surrounding the election, marking the third consecutive day of net outflows for U.S. spot Bitcoin ETFs.

The day before, the combined spot ETFs saw an even larger outflow of $541.1 million, the second-largest one-day outflow for the sector to date.

While Bitcoin spot ETFs faced investor hesitation, spot markets for Bitcoin itself surged as U.S. election results unfolded, pushing Bitcoin prices to an all-time high of $75,000.

Henrik Andersson, Chief Investment Officer at Apollo Crypto, described Bitcoin as “the election trade for traders globally,” noting a high probability of a Donald Trump victory as reflected in global betting markets.

He suggested that the Bitcoin price might have already made 80% of its move, trading above $74,000, and predicted it could reach $100,000 by year’s end if Trump wins.

Nate Geraci, president of the ETF Store, provided a broader perspective on the role of elections in the investment landscape.

In a blog post, he emphasized that while election outcomes can influence the regulatory environment, especially with respect to the Securities and Exchange Commission (SEC), the longer-term outlook for ETF innovation depends on bipartisan regulatory support.

“A comprehensive crypto framework is needed, but this election could certainly impact the pace of ETF progress in the sector,” Geraci wrote.

Election day ETF fun fact…

Unusual Whales Subversive Democratic ETF (NANC) has outperformed S&P 500 since its Feb 2023 inception.

Invests in stocks bought by Democratic members of Congress & their spouses. pic.twitter.com/pFDil3hcqL

— Nate Geraci (@NateGeraci) November 5, 2024

Digital Asset Products See Record Inflows of $2.2 Billion

Last week, digital asset investment products experienced a significant surge, attracting inflows of $2.2 billion, bringing the total year-to-date inflows to a historic $29.2 billion.

The impressive influx has pushed total assets under management (AuM) to over $100 billion for only the second time ever, reaching $102 billion—similar to levels seen in early June 2024.

Bitcoin was the primary beneficiary, absorbing the entire $2.2 billion inflow, while short-Bitcoin products attracted an additional $8.9 million.

In contrast, Ethereum saw only $9.5 million in inflows, with Solana gaining $5.7 million, while other altcoins, like Polkadot and Arbitrum, recorded minor inflows.

The U.S. market led the way with the full $2.2 billion in inflows, while Germany recorded modest inflows of $5.1 million.