Spot Bitcoin exchange-traded funds (ETFs) recorded a net outflow of $116.8 million on U.S. election day, reflecting investor caution amid political uncertainty. Fidelity’s Wise Origin Bitcoin Fund led the outflows, with $68.2 million exiting, according to SoSo Value data. Meanwhile, the Bitwise Bitcoin ETF was the only fund to post gains, recording a $19.3 million inflow.
BlackRock’s ETF Faces Sixth Outflow Since Launch
BlackRock’s iShares Bitcoin Trust experienced a $44.2 million outflow on November 5, marking the sixth instance since its January debut. The recent streak of cautious moves among institutional investors has led to three consecutive days of net outflows for U.S. spot Bitcoin ETFs, following a significant $541.1 million outflow the previous day, the second-largest daily outflow to date.
While ETF outflows highlighted investor hesitation, Bitcoin’s spot market surged in response to unfolding election results, driving the asset’s price to a new peak of $75,000. Henrik Andersson, Chief Investment Officer at Apollo Crypto, described Bitcoin as “the election trade for global traders,” with a strong probability of a Trump victory spurring further gains. Bitcoin’s price recently topped $74,000, and Andersson predicts it may hit $100,000 by year’s end if Trump secures the presidency.
Nate Geraci, president of the ETF Store, noted in a blog post that while elections influence regulatory shifts—particularly at the SEC—the long-term trajectory of ETF innovation hinges on bipartisan regulatory support. “A comprehensive crypto framework is needed, but this election could certainly impact the pace of ETF progress in the sector,” Geraci wrote.
Record-Breaking Inflows for Digital Assets
Last week saw digital asset investment products attract a substantial $2.2 billion inflow, pushing the 2024 year-to-date total to an all-time high of $29.2 billion. Total assets under management (AuM) reached $102 billion, marking only the second instance of surpassing the $100 billion milestone since June 2024. Bitcoin led the inflows, receiving the entire $2.2 billion, while short-Bitcoin products saw $8.9 million in inflows. Ethereum gained $9.5 million, with Solana following at $5.7 million, while altcoins like Polkadot and Arbitrum recorded minor gains.
The U.S. market led the inflow surge, contributing the full $2.2 billion, while Germany added a modest $5.1 million.
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