BTC ETFs Experience Second-Largest Outflows Amid Market-Wide FUD

On November 4, U.S.-based spot Bitcoin exchange-traded funds (ETFs) saw their second-largest net outflows in recent months, amid a backdrop of market uncertainty. According to data from Farside Investors, Bitcoin ETFs recorded a net outflow of $541.1 million on Monday, marking the second-highest outflow since May 1, when the outflow reached $563.7 million.

Largest Outflows from Leading Bitcoin Funds

The bulk of the outflows came from major Bitcoin ETFs, with several funds experiencing triple-digit withdrawals:

• Fidelity’s FBTC saw a $169.6 million outflow.
• ARK 21Shares’ ARKB experienced a $138.3 million withdrawal.
• Outflows from Grayscale’s GBTC and BTC were $89.5 million and $63.7 million, respectively.
• Other funds, including Bitwise’s BITB, Franklin Templeton’s EZBC, and VanEck’s HODL, recorded outflows of $79.8 million, $17.6 million, and $15.3 million, respectively.
• Valkyrie’s BRRR ETF also saw $5.7 million in outflows.

Despite the overall negative sentiment, BlackRock’s BITB ETF bucked the trend, experiencing a net inflow of $38.4 million. Since its launch in January, BITB has seen only five days of outflows, with the largest being $36.9 million six months ago.

Market Sentiment and the U.S. Presidential Election

The surge in outflows and the general market downturn appear to be linked to fear, uncertainty, and doubt (FUD), particularly surrounding the U.S. presidential elections, which are set to take place today. Investors seem to be adopting a cautious stance, likely waiting for clearer signals regarding regulatory decisions and political outcomes.

As outflows continued for the second consecutive day, Bitcoin’s price fell by 1%, bringing its value to approximately $68,300 at the time of writing.

Ethereum ETFs Also Experience Outflows

Bitcoin wasn’t the only cryptocurrency to see ETF outflows. Ethereum ETFs also faced significant withdrawals, with $63.2 million in outflows reported on the same day. Ethereum’s price mirrored the bearish trend, dropping 1.6% to hover just above the $2,400 mark.

Market-Wide Impact of BTC and ETH Declines

The declines in both Bitcoin and Ethereum contributed to broader market-wide FUD, which sent shockwaves through the entire cryptocurrency space. According to CoinGecko, the global crypto market capitalization fell by 2.5% over the past 24 hours, dipping to $2.38 trillion and wiping out $33 billion from the market.

While the current market sentiment remains cautious, the industry is closely watching for potential shifts, especially once the results of the U.S. presidential elections are clearer and regulatory developments unfold in the coming months.