U.S. Bitcoin ETFs Experience Significant Net Outflows

U.S. spot bitcoin exchange-traded funds (ETFs) experienced a notable $541 million in net outflows on Monday, the largest since May 1 and the second-largest since January.

This decline follows a substantial $2.22 billion influx last week, one of the ETFs' largest weekly net inflows. Rachael Lucas, a crypto analyst at BTCMarkets, remarked, “After last week’s record-breaking inflows, some degree of rebalancing is expected as investors take profits and adjust portfolios in anticipation of market volatility.” The timing aligns with the impending U.S. election results, leading many participants to adopt a 'wait and see' approach amid geopolitical and policy uncertainties.

Eight spot bitcoin ETFs reported net outflows on Monday, with Fidelity’s FBTC seeing $169.6 million in outflows, marking its second-largest outflow since launch, according to SoSoValue data.

• Ark and 21Shares' ARKB: $138.26 million in outflows.
• Bitwise's BITB: $79.84 million in outflows.
• Grayscale's GBTC: $63.66 million in outflows.
• Grayscale's Mini Bitcoin Trust: $89.49 million in outflows.
• Other firms including Franklin Templeton, VanEck, and Valkyrie, also faced net outflows.

The sole positive flow was from BlackRock’s IBIT, which recorded $38.42 million in inflows. Trading volume for the 12 bitcoin ETFs was around $2.22 billion, down from $3.09 billion on Friday, with a cumulative total net inflow of $23.61 billion.

Lucas highlighted that ETF flows might be influenced by the election outcome, indicating that crypto-friendly results could lead to renewed inflows. Conversely, increased regulatory scrutiny following a potential Democratic win might cause further outflows.

Bitcoin's price has fluctuated around the $68,000 level, stabilizing around $68,500 as of this writing. The Federal Open Market Committee meeting is also anticipated following the U.S. presidential election results.

Ether ETFs Downfall

In a related note, spot ether ETFs also experienced significant outflows on Monday, totaling $63.22 million, marking the largest daily net outflow since September 23.

These outflows were chiefly from Fidelity’s FETH and Grayscale’s Mini Ethereum Trust, each logging over $31 million in outflows, while Grayscale's ETHE reported $10.8 million in outflows. The only exception was BlackRock’s ETHE, which saw inflows totaling $11 million.

The total trading volume for the nine spot ether ETFs diminished to $149.11 million, down from $169.11 million on Friday, with cumulative net outflows at $554.66 million.