On Monday, spot bitcoin exchange-traded funds (ETFs) recorded their second-largest single-day net outflow since their launch in January. Cryptocurrency-based investment products experienced their second consecutive red day ahead of the US elections, ending a seven-day positive streak.
bitcoin ETFs record massive outflow day
US-listed spot bitcoin (btc) ETFs started the month negatively after recording two days of outflows. Investment products delivered notable results for most of October, recording four consecutive green weeks and surpassing the $2 billion mark twice.
Last week, bitcoin ETF recorded 2.2 billion dollars in inflows, leading the positive performance of crypto investment products for the fourth consecutive week. However, the funds saw a significant decline in net flow from October 30 to 31 as the price of bitcoin struggled, going from $893.3 million in inflows to just $32.3 million.
On Friday, btc ETFs had their first red day since October 22, ending their seven-day streak with $54.9 million in outflows. Negative sentiment continued earlier this week as bitcoin-based investment products x.com/WuBlockchain/status/1853667106140909658″ target=”_blank” rel=”noopener nofollow”>registered the second-highest single-day net outflow since its launch in January.
The funds recorded their biggest day of negative performance on May 2, with outflows of $563 million. Meanwhile, bitcoin ETFs recorded outflows of $541.1 million on Monday. Bitwise's BITB, AKR Invest's ARKB, and Grayscale's Mini Trust (btc) reportedly had record days of outflows on November 4.
<img data-recalc-dims="1" decoding="async" class="size-large wp-image-337309 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/Bitcoin-ETF-Outflows-of-541-Million-Record-Second-Worst-Performing.png" alt="bitcoin” width=”980″ height=”524″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/11/Captura-de-Pantalla-2024-11-05-a-las-9.28.57-a.-m.png?w=1076 1076w, https://bitcoinist.com/wp-content/uploads/2024/11/Captura-de-Pantalla-2024-11-05-a-las-9.28.57-a.-m.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/11/Captura-de-Pantalla-2024-11-05-a-las-9.28.57-a.-m.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/11/Captura-de-Pantalla-2024-11-05-a-las-9.28.57-a.-m.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/11/Captura-de-Pantalla-2024-11-05-a-las-9.28.57-a.-m.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px”/>
btc ETFs see $541 million in outflows on Nov. 4. Source: Farside Investors
According btc/” target=”_blank” rel=”noopener nofollow”>data Farside Investors' BITB and btc recorded outflows of $79.8 million and $89.5 million, respectively, while ARB recorded $138.3 million in negative net flows. However, Fidelity's FBTC led yesterday's losses with $169.6 million in outflows, its second worst-performing day.
BlackRock's IBIT was the only btc ETF to post positive net flow yesterday, with $38.4 million in inflows.
btc ETFs will continue to thrive
The massive outflows from bitcoin ETFs occurred just one day before the US elections. Experts agreed that market volatility and speculation surrounding the outcome of the elections have affected investment products.
on a tuesday x.com/natbrunell/status/1853786080127910385″ target=”_blank” rel=”noopener nofollow”>interviewBloomberg analyst Eric Balchunas noted that the election is an important variable that could further affect bitcoin price action and ETF performance.
However, it believes that the net flow of investment products, amounting to $29 billion, has prompted “real thinking” during the “couple of crises” seen this year, suggesting that the performance of ETFs btc will exceed all expectations in its first year, even if the election result negatively impacts the market.
Balchunas called ETFs the “main vehicle” for traditional investors and a “disruptive powerhouse” that has “a lot of spiritual connection” to bitcoin. For the analyst, these connections make bitcoin ETFs a solid long-term combination.
Meanwhile, Bitwise Chief Investment Officer (CIO) Matt Hougan crypto-has-already-won” target=”_blank” rel=”noopener nofollow”>consider that “cryptocurrencies have already won” regardless of the election outcome, but suggested that a Trump victory would be better for the market in the short term.
For Hougan, the only possible “bad” outcome would be a Democratic victory. However, he would remain optimistic about that scenario and buy the dip, as the last four years have taught him that “Washington can't stop cryptocurrencies.”
Ultimately, Bitwise's CIO stated that cryptocurrency-based spot ETFs will continue to receive inflows and that the industry will continue to grow, even if the market slows down.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="size-large wp-image-337308 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/1730913026_121_Bitcoin-ETF-Outflows-of-541-Million-Record-Second-Worst-Performing.png" alt="bitcoin, btc, BTCUSDT” width=”980″ height=”524″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/11/BTCUSDT_2024-11-05_08-31-23.png?w=1102 1102w, https://bitcoinist.com/wp-content/uploads/2024/11/BTCUSDT_2024-11-05_08-31-23.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/11/BTCUSDT_2024-11-05_08-31-23.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/11/BTCUSDT_2024-11-05_08-31-23.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/11/BTCUSDT_2024-11-05_08-31-23.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px”/>
bitcoin is trading at $68,738 in the weekly chart. Source: BTCUSDT on x/7WPR5HGI/" target="_blank" rel="noopener nofollow">TradingView
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