U.S.-based Bitcoin exchange-traded funds (ETFs) recently witnessed one of their largest outflows ahead of the impending presidential election. Data from SoSo Value indicates that, on November 4—just a day before the U.S. heads to the polls—11 spot Bitcoin ETFs saw net withdrawals of $541.1 million, marking the second-largest outflow day in history. The top record remains May 1, when $563.7 million exited following a significant 10.7% drop in Bitcoin’s price over the previous week.
BlackRock’s IBIT Stands Out with Positive Inflows
Among the ETFs, BlackRock’s iShares Bitcoin Trust ETF (IBIT) distinguished itself as the sole fund to report net positive inflows, pulling in $38.4 million. In contrast, other ETFs, like Fidelity’s Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB), faced substantial withdrawals—$169.6 million and $138.3 million, respectively. Grayscale’s Bitcoin funds also reported considerable outflows, with $63.7 million exiting the Grayscale Bitcoin Trust (GBTC) and another $89.5 million leaving its smaller counterpart.
This decline in ETF holdings highlights market caution as Bitcoin’s price has fallen 4.6% over the past week and 1.7% in the last 24 hours, hovering around $68,000. Investor concerns stem from the upcoming election and the potential for market volatility, with Bitcoin often reacting to political shifts.
Election Uncertainty Reflects in Crypto Markets
According to recent polls from FiveThirtyEight, the race between Kamala Harris and Donald Trump remains close, with Harris holding a slim 1.2-point lead as of November 4. Meanwhile, Trump’s odds on the crypto betting platform Polymarket have fluctuated, hitting a low of 53.8% on November 3 before rebounding to over 59%. Analysts attribute Trump’s pro-crypto stance to his popularity among crypto investors, with some speculating that a Republican win could propel Bitcoin prices to new highs, potentially reaching $100,000.
CoinShares’ head of research, James Butterfill, pointed out that recent inflows of $2.2 billion into digital assets were partially due to investor optimism regarding a possible Republican victory. He commented, “As polls have turned, we saw minor outflows on Friday, underlining how sensitive Bitcoin is to U.S. election dynamics.”
Record Inflows into Digital Asset Investment Products
Last week’s inflows into digital asset investment products were notable, with a record $2.2 billion entering the market, pushing total year-to-date inflows to an all-time high of $29.2 billion. This surge raised total assets under management (AuM) to $102 billion, a level only previously seen in June 2024.
Bitcoin was the top recipient of these inflows, capturing the full $2.2 billion, while short-Bitcoin products attracted an additional $8.9 million. Ethereum saw modest inflows of $9.5 million, with Solana gaining $5.7 million. Other altcoins, such as Polkadot and Arbitrum, recorded smaller inflows. The U.S. led the way with $2.2 billion in new investments, while Germany contributed a modest $5.1 million.
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