Spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded a significant net outflow of $541 million on Monday, the largest daily negative flow since May 1. This comes on the heels of a massive $2.22 billion weekly inflow last week, highlighting the fluctuating sentiment among investors as they prepare for heightened market volatility ahead of the U.S. election.
Rachael Lucas, a crypto analyst at BTCMarkets, attributed the outflows to strategic rebalancing, noting that “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.” According to Lucas, many investors are adopting a cautious stance amid geopolitical and policy uncertainties associated with the election outcome.
Eight spot Bitcoin ETFs saw outflows on Monday, led by Fidelity’s FBTC with $169.6 million exiting the fund.
ARKB, managed by Ark and 21Shares, saw $138.26 million in outflows, followed by Bitwise’s BITB with $79.84 million. Grayscale’s GBTC and Mini Bitcoin Trust reported combined outflows totaling $153.15 million. BlackRock’s IBIT ETF, however, was the only fund to see net inflows, adding $38.42 million.
The total trading volume across all 12 Bitcoin ETFs was $2.22 billion on Monday, down from $3.09 billion on Friday, while cumulative net inflows stood at $23.61 billion. Lucas suggests that future ETF flows could be heavily influenced by election results. “If results signal a crypto-friendly political environment, we might see renewed inflows and a bullish turn in sentiment,” she added.
Ethereum ETFs were also affected, with a $63.22 million net outflow marking the largest daily outflow since late September. Most withdrawals came from Fidelity’s FETH and Grayscale’s Mini Ethereum Trust, while BlackRock’s ETHE was the only Ethereum fund to see inflows, totaling $11 million.
