Bitcoin exchange-traded funds (ETFs) in the United States faced significant outflows on November 4, marking the second-largest such event in their history. The collective outflow amounted to $541.1 million, occurring just a day before a closely watched election across the nation. While most of the 11 spot Bitcoin ETFs experienced substantial withdrawals, BlackRock’s iShares Bitcoin Trust ETF was a notable exception, managing to attract $38.4 million in inflows.
This outflow followed a troubling period for Bitcoin , which saw a decline of 4.6% over the week leading up to the election, pushing its price down to around $68,000. The largest individual outflow on November 4 was logged by the Fidelity Wise Origin Bitcoin Fund, which experienced a withdrawal of $169.6 million. The ARK 21Shares Bitcoin ETF recorded $138.3 million in outflows, while Grayscale’s Bitcoin funds collectively lost $153.2 million.
In terms of specific performance, the Grayscale Bitcoin Trust saw its outflows reach $63.7 million, while its smaller version faced withdrawals of $89.5 million. This trend highlights the overall cautious sentiment among Bitcoin traders as they adjust their positions ahead of the election. The previous week had also seen a notable net inflow of $2.2 billion to U.S. Bitcoin funds, albeit ending the week with a minor outflow.
The current political landscape, particularly the tight race between candidates, has heightened market sensitivity as traders speculate on the potential ramifications for Bitcoin based on election outcomes. Polling indicates that the candidates are nearly tied, and shifts in political sentiment are likely exerting pressure on Bitcoin ’s price, sparking renewed discussions about its future value. Traders continue to consider the implications of a Republican win, especially given the party’s favorable stance towards cryptocurrency.
