Investors pulled $541.1 million from spot Bitcoin ETFs and $63.2 million from Ethereum-focused funds just ahead of the U.S. presidential election, according to data from U.K.-based asset manager Farside Investors. This marked the largest Bitcoin ETF outflow since May 1, when $563.7 million was withdrawn.
The withdrawals represented a dramatic shift from the previous week, during which Bitcoin ETFs saw net inflows of $2.2 billion, driven by optimism around Donald Trump’s presidential bid. However, market sentiment shifted over the weekend as Kamala Harris gained traction.
Kent Thune, research lead at ETF.web, suggested that while the crypto market is not necessarily forecasting a Trump loss, the outflows likely reflect pre-election positioning, with traders locking in profits ahead of the vote. Bitcoin had risen more than 12% in the preceding month.
Bitcoin, the largest cryptocurrency by market cap, experienced a slight dip on Monday but rebounded to around $70,000, marking a nearly 4% increase over the past 24 hours. The uptick coincided with gains in equities and other risk-on assets. Fund flow data for Tuesday was unavailable at the time of publication.
Among the notable funds, BlackRock’s iShares Bitcoin Trust (IBIT) stood out, attracting $38.4 million in inflows. In contrast, Fidelity’s Wise Origin Bitcoin Fund (FBTC) suffered the largest single-day outflow, with $169.6 million exiting.
Other Bitcoin ETFs also saw significant outflows on the eve of the election, with the ARK 21Shares Bitcoin ETF (ARKB) losing $138.3 million and the Bitwise Bitcoin ETF (BITB) seeing $79.8 million withdrawn.
Despite the recent outflows, Bitcoin ETFs have seen substantial year-to-date inflows, totaling $23.7 billion, with total assets under management now approaching $60 billion.
Market experts attribute the outflows to broader market dynamics rather than immediate political developments. Joe DiPasquale, CEO of BitBull Capital, noted that inflow trends are largely influenced by market conditions and investor sentiment. He added that many large purchasers are awaiting more information, including the election results and Bitcoin’s movement beyond the $73,000 resistance level.
Thune also suggested that if Trump loses, Bitcoin could experience short-term losses but could ultimately be viewed as a long-term buying opportunity.
Ethereum ETFs have seen positive flows as well, with BlackRock’s iShares Ethereum Trust (ETHA) attracting $1.4 billion in year-to-date inflows, and Fidelity’s Ethereum Fund (FETH) drawing $482.9 million. Meanwhile, Ethereum’s price recently stood at $2,453, a 7.4% drop over the past week.
As the market navigates pre-election volatility, crypto investors remain focused on the potential longer-term effects of the election outcome and Bitcoin’s price trajectory.
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