What Happened With Bitcoin and Ethereum ETFs on Last Trading Day Before US Elections?

November 5 marked a pivotal day in the United States as citizens voted for their next president, determining whether the Democratic leadership would continue or if Donald Trump would return to office. This election period drew significant attention to how local investors engaged in the cryptocurrency market, particularly regarding regulated spot cryptocurrency exchange-traded funds (ETFs).

BTC ETF Streak Ends

Recently, Bitcoin ETFs enjoyed a positive trend, with substantial inflows. However, on November 4, this streak was broken as investors pulled out $541.1 million from the 11 spot BTC ETFs, marking the largest net outflow since May 1. This shift came after a week that had seen over $2.2 billion in inflows, the best performance since mid-March.

• Major Outflows: Fidelity’s FBTC led the outflows with a loss of $169.6 million, followed by Ark Invest’s ARKB at $138.3 million.

• BlackRock's IBIT: The only ETF to see gains was BlackRock’s IBIT, which recorded $38.4 million in net inflows.

As a result of these outflows, Bitcoin's price fell from over $69,000 to a weekly low of $66,800, although it has since recovered slightly.

Ethereum ETFs Experience Significant Withdrawals

Ethereum ETFs faced a challenging day as well, with total net outflows reaching $63.2 million. Fidelity’s FETH and Grayscale’s ETH were the primary contributors to these withdrawals, losing $31.5 million and $31.9 million, respectively. This marked the worst day for Ethereum ETFs since September 23.

• ETH Price Decline: Ethereum's price dropped to $2,370 during the night, recovering slightly to $2,420, but still reflecting a 1.5% decrease for the day and over 7% lower than the previous Tuesday.

The last trading day before the US elections revealed significant volatility in both Bitcoin and Ethereum ETFs, with substantial outflows indicating a shift in investor sentiment. As the election results unfold, further market fluctuations are anticipated.