- After one of their biggest runs of net inflows last week, U.S. spot bitcoin ETFs posted $541 million in net withdrawals on Monday.
- In anticipation of the outcome of the U.S. presidential election, the price of bitcoin has been bouncing about $68,000 throughout the past day.
Monday’s $541 million net outflow from U.S. spot bitcoin exchange-traded funds was the biggest daily net outflow since May 1 and the second-largest negative flow since trading started in January.
This comes after the ETFs saw one of their biggest weekly net inflows last week, totaling $2.22 billion.
A certain amount of rebalancing is anticipated following last week’s record-breaking inflows, as investors take profits and modify their portfolios in preparation for market volatility.
As many market participants take a “wait and see” approach in the face of increased geopolitical and policy uncertainties, the timing probably coincides with the results of the impending U.S. election.
Yesterday, there were net outflows from eight spot bitcoin ETFs, with Fidelity’s FBTC registering net outflows of $169.6 million. According to SoSoValue data, Monday was also the second-largest daily net outflow for FBTC since its launch.
Bitwise’s BITB experienced net outflows of $79.84 million, while Ark and 21Shares’ ARKB saw net outflows of $138.26 million. Additionally, net outflows of $63.66 million and 89.49 million were reported by Grayscale’s GBTC and Mini Bitcoin Trust, respectively. On Monday, there were net withdrawals from Franklin Templeton, VanEck, and Valkyrie funds as well.
Yesterday, BlackRock’s IBIT, the biggest spot bitcoin ETF by net assets, saw the only net inflows, totaling $38.42 million.
Yesterday, the 12 bitcoin ETFs were worth about $2.22 billion, while on Friday, they were worth $3.09 billion. They received $23.61 billion in net inflows overall.
The outcome of the election may have an impact on ETF flows in the future. We may witness fresh inflows and a bullish shift in attitude if the results point to a political climate that is favorable to cryptocurrencies. However, we might witness further outflows if investors react cautiously if there are indications of heightened regulatory scrutiny, especially after a Democratic victory.
Bitcoin has been bouncing about the $68,000 mark for the last day, but it looks to have settled at $68,500 at the time of writing. The Federal Open Market Committee will meet after the results of the U.S. presidential election.
The biggest net withdrawal from ether ETFs in six weeks
On Monday, there were net withdrawals of $63.22 million from spot ether ETFs as well. Since September 23, this was the biggest daily net outflow.
The majority of the outflows were from Grayscale’s Mini Ethereum Trust and Fidelity’s FETH, both of which saw outflows over $31 million. There were also $10.8 million in net outflows from Grayscale’s ETHE. The only fund with net inflows on Monday was BlackRock’s ETHE, which brought in $11 million.
The trading volume of the nine spot ether ETFs decreased from $169.11 million on Friday to $149.11 million yesterday. The total amount of their net outflows was $554.66 million.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
