Bitcoin ETFs Record Second Largest $541M In Outflows Of All Time

Bitcoin ETFs experienced a massive outflow on November 4, as $541 million was withdrawn, marking the second-largest single-day outflow in their history. This came amid growing uncertainty in the market due to the upcoming U.S. election. The heaviest outflows were seen in Fidelity’s FBTC, which recorded a $170 million loss, with other notable outflows including $138 million from ARKB and $80 million from BITB. This large-scale divestment signals caution from investors wary of potential market volatility tied to the election and Federal Reserve decisions.

Bitcoin ETF Note Record Outflow Ahead Of US Election

Bitcoin’s sharp ETF outflows on November 4 emphasize growing investor caution, particularly in the face of heightened U.S. political and economic uncertainty. The U.S. presidential election, scheduled for November 5, has tightened in polls, with pro-crypto candidate Donald Trump maintaining a narrow edge in several metrics. This election, along with impending Federal Reserve announcements, adds layers of unpredictability to the market, with many investors reducing their crypto holdings to mitigate risk. Fidelity’s FBTC led the withdrawals with $170 million in outflows, a substantial figure reflecting caution, especially as such moves can set trends across other ETFs and funds.

Funds like Ark Invest’s ARKB and Bitwise’s BITB also faced significant outflows at $138 million and $80 million, respectively. Grayscale’s Bitcoin Trust reported $153 million in withdrawals across both its BTC and GBTC funds. Notably, BlackRock’s IBIT was the only fund with net inflows, securing $38 million even as the sector overall experienced steep divestments. This divergence could indicate a preference for perceived safer funds or simply reflect BlackRock’s unique positioning within the market.

Bitcoin Price Decline as Volatility Increases

As investors pulled back from Bitcoin ETFs, the price of Bitcoin dipped to $68,700, a 0.5% decrease in the past 24 hours. Spot prices over the weekend dropped as low as $67,300, signaling broader caution and positioning adjustments ahead of major U.S. economic and political events. This slight but consistent price drop has brought the largest crypto asset down nearly 3.21% in the past seven days, according to CoinMarketCap.

Bitcoin’s trading volume and open interest levels indicate a mixed stance in the market. Open interest has risen by 1.17% over the past 24 hours, according to CoinGlass data, while trading volume surged by 23.57%, reaching $42 billion. Bitcoin’s market cap now stands at $1.36 trillion, suggesting increased engagement even as the market remains cautious. Analysts expect further shifts in volume and open interest, with potential volatility linked to the U.S. election outcome and the Federal Reserve’s policy update on November 6. Historically, Bitcoin has seen significant post-election gains, with notable increases in the years following the 2012, 2016, and 2020 elections. However, short-term price movements could depend on the election result.