US spot Bitcoin ETFs recorded one of the largest streaks of net inflows last week. However, it subsequently reported a net outflow of $541 million on Monday. Meanwhile, spot Ethereum ETFs also saw their biggest net outflow in six weeks. Bitcoin has fluctuated around $68,000 over the past day as the market awaits the outcome of the US presidential election.
Spot Bitcoin ETFs see record outflow: What’s behind the scenes?
US spot Bitcoin ETFs saw net outflows of $541 million on Monday. Thus, it witnessed its largest daily net outflow since May 1. It also recorded the second-largest negative flow since it began trading in January. This follows $2.22 billion inflows into ETFs last week. BTCMarkets’ crypto analyst Rachael Lucas commented on the development as follows:
Following last week’s record inflows, some rebalancing is expected as investors take profits and adjust their portfolios in anticipation of market volatility. The timing is likely in line with the upcoming US election results as many market participants adopt a ‘wait and see’ stance amid increasing geopolitical and policy uncertainties.
How do election results affect ETFs?
Eight spot Bitcoin ETFs saw net outflows yesterday. Of these, Fidelity’s FBTC recorded a net outflow of $169.6 million. According to SoSoValue, it was the second largest daily net outflow since FBTC’s debut. Ark and 21Shares’ ARKB experienced a net outflow of $138.26 million. Bitwise’s BITB witnessed a net outflow of $79.84 million. Grayscale’s GBTC and Mini Bitcoin Trust also reported net outflows of $63.66 million and $89.49 million, respectively. Franklin Templeton, VanEck and Valkyrie funds also experienced net outflows on Monday. Lucas made the following assessment regarding the development:
Going forward, ETF flows may be affected by election results. If the results point to a crypto-friendly political environment, we could see renewed inflows and an uptick in sentiment. However, we could see further outflows as investors remain cautious, especially if there are signs of increased regulatory scrutiny following a Democratic win.
Ethereum ETFs see biggest net outflow in six weeks
Meanwhile, spot Ethereum ETFs also saw net outflows on Monday. Accordingly, 63.22 million dollars came out of the funds. This was the largest daily net outflow since September 23. Outflows came mainly from Fidelity’s FETH and Grayscale’s Mini Ethereum Trust, which both recorded outflows of over $31 million. Grayscale’s ETHE also saw a net outflow of $10.8 million. BlackRock’s ETHE was the only fund with total net inflows of $11 million on Monday. Trading volume for nine spot Ethereum ETFs fell from $169.11 million on Friday to $149.11 million yesterday. Their cumulative net outflow was 554.66 million dollars. Continue to follow the developments on Kriptokoin.com.
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