Originally published on: November 05, 2024
Bitcoin exchange-traded funds (ETFs) in the United States recently saw a substantial outflow of $541.1 million, marking the second-largest daily outflow in history. This trend occurred just before the highly anticipated US election, indicating a shift in investor sentiment.
Among the ETFs, BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only one to receive inflows, totaling $38.4 million. This movement reflects the uncertainty surrounding the election and its potential impact on the cryptocurrency market.
Bitcoin traders have been reducing their exposure leading up to election day, with the cryptocurrency falling by 4.6% over the past week and 1.7% in the last 24 hours. This cautious approach suggests that investors are closely monitoring political developments and adjusting their positions accordingly.
The Fidelity Wise Origin Bitcoin Fund experienced the largest outflow on November 4, amounting to $169.6 million, followed by $138.3 million flowing from the ARK 21Shares Bitcoin ETF. Additionally, Grayscale’s Bitcoin funds collectively recorded $153.2 million in outflows, with the Grayscale Bitcoin Trust (GBTC) and its mini GBTC witnessing significant withdrawals.
The recent outflows follow a period of inflows into US Bitcoin funds, driven by optimism surrounding a potential Republican victory in the election. However, as polls have shifted, investors have started to realign their portfolios, resulting in outflows from various ETFs.
With the outcome of the election still uncertain, traders are closely watching the polls and market dynamics to make informed investment decisions. The crypto industry’s favorite candidate, favored for his pro-crypto stance, is seen as a potential catalyst for Bitcoin’s price to reach new highs, with speculations of hitting $100,000 if he secures victory.
As the election draws nearer, the cryptocurrency market remains on edge, with investors navigating the evolving landscape and adjusting their strategies accordingly. Stay informed with critical insights and analysis to navigate the market effectively and capitalize on emerging opportunities. Subscribe to our newsletter to access exclusive content and stay ahead of the curve.
