With the U.S. presidential election taking center stage on November 5, local investors took cautious action in cryptocurrency exchange-traded funds (ETFs), a move that significantly impacted both Bitcoin and Ethereum’s spot ETF markets.
BTC Spot ETFs: Streak Ends Amid Record Outflows
After a promising month for spot Bitcoin ETFs, which saw robust net inflows peaking last week at $2.2 billion, investors reversed course on November 4. Data from Farside indicates that these funds faced a net outflow of $541.1 million, the highest since May 1. This exit was primarily led by Fidelity’s FBTC ETF, which saw $169.6 million withdrawn, followed by Ark Invest’s ARKB with $138.3 million in outflows. Despite the widespread retreat, BlackRock’s IBIT ETF attracted $38.4 million in net inflows, serving as a slight counterpoint to the broader trend.
As a result of this shift, Bitcoin’s price dropped from over $69,000 to a weekly low of $66,800, partially recovering to $68,800. However, BTC remains $5,000 lower than last week’s near-record high of $73,000. With election results expected shortly, more volatility in BTC’s price is anticipated.
Ethereum ETFs Mirror BTC’s Performance with Sharp Outflows
Ethereum ETFs have struggled to gain investor interest over recent months, and the day before the election proved to be particularly challenging. Spot ETH ETFs reported total net outflows of $63.2 million, marking their most significant single-day decline since September 23. Fidelity’s FETH and Grayscale’s ETH products led these withdrawals, with $31.5 million and $31.9 million outflows, respectively.
The broader selloff in Ethereum ETFs has pressured ETH’s price, which dipped to $2,370 before recovering slightly to $2,420. Overall, ETH is down 1.5% on the day and more than 7% lower than the previous week.
Market Outlook: Awaiting Election Results
Investors and analysts are closely watching for the outcome of the U.S. presidential election, as either candidate could bring distinct economic and regulatory policies that would affect the crypto market. With significant outflows in both BTC and ETH spot ETFs, volatility is likely to persist as the election results unfold.
Source: https://cryptopotato.com/
