US Bitcoin ETFs See $541M in Outflows Amid Election Uncertainty, Second-Largest to Date

Bitcoin exchange-traded funds (ETFs) in the United States witnessed substantial outflows ahead of a highly anticipated presidential election, marking their second-largest outflow day on record.

On November 4, just one day before U.S. voters head to the polls, 11 spot Bitcoin ETFs recorded net withdrawals totaling $541.1 million, according to data from SoSo Value.

The largest outflow day remains May 1, when these ETFs saw $563.7 million withdrawn following a 10.7% drop in Bitcoin’s price over a week.

BlackRock’s IBIT Reports Positive Inflows

BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only fund among the group 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, marking two of the top five outflow figures for the day.

The drop in ETF holdings reflects 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.

💥BREAKING: Yesterday the Spot #Bitcoin ETF saw $541.07 MILLION OUTFLOW!

🚨THIS IS THE 2ND BIGGEST OUTFLOW EVER.

Blackrock is still buying. pic.twitter.com/s192gjenPZ

— Blacksea (@333blacksea) November 5, 2024

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.

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 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.

CoinShares’ head of research, James Butterfill, noted that the prior week’s inflows, totaling $2.2 billion, were partly fueled by optimism about a Republican win.

“As polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the U.S. elections at present,” he remarked.

Digital Asset Products See Record Inflows of $2.2 Billion

As reported, digital asset investment products experienced a significant surge last week, 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.