Originally published on: November 06, 2024
On a day filled with uncertainty due to the US election, BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced its sixth consecutive day of net outflows since its launch earlier this year.
Institutional investors appeared to take a risk-averse approach on election day as the iShares Bitcoin Trust saw a notable outflow of $44.2 million on November 5th, according to CoinGlass data.
This marked only the sixth day in the ETF’s history where it experienced a net outflow, with the last one occurring on October 10th when $10.8 million exited the fund.
Overall, the 11 US spot Bitcoin ETFs collectively recorded a net outflow of $116.8 million, with the Fidelity Wise Origin Bitcoin Fund leading the pack with an outflow of $68.2 million. The Bitwise Bitcoin ETF, however, stood out as the only fund to see an inflow of $19.3 million on the same day.
The trend of outflows continued for the US spot Bitcoin ETFs for a third consecutive trading day, following one of their largest outflow days amounting to over $541.1 million.
As the Bitcoin market soared after the US election results unfolded, reaching an all-time high of $75,000, Apollo Crypto’s chief investment officer Henrik Andersson remarked that “Bitcoin is currently the election trade for traders globally.”
Based on his analysis of betting markets and traditional sources, Andersson predicted an 80% to 90% chance of a Donald Trump victory, estimating that Bitcoin could hit $100,000 by the year-end if Trump emerges as the winner.
In light of the recent ETF flows and market dynamics, the impact of the election on investments remains a topic of interest. While Nate Geraci, president of ETF Store, emphasized in a blog post that the regulatory environment, particularly SEC leadership, could have a significant effect on ETF innovation.
With Bitcoin ETFs witnessing notable movements amid the US election backdrop, the cryptocurrency market continues to be an area of intrigue for investors globally.
