Based in the United States, Bitcoin exchange-traded funds (ETFs) have registered their second-largest outflow in history, just one day prior to the nation’s highly competitive election.
The 11 spot Bitcoin (BTC) ETFs witnessed a net outflow of $541.1 million on Monday, Nov. 4, with only BlackRock’s iShares Bitcoin Trust ETF (IBIT) managing to secure inflows of $38.4 million, as reported by CoinGlass.
This marks the greatest outflow day these ETFs have experienced apart from May 1, when the ETFs posted $563.7 million in outflows following a 10.7% decline of Bitcoin over a week to $60,000.
In anticipation of the US election on Tuesday, Nov. 5, Bitcoin traders have been reducing their exposure, with Bitcoin dropping 4.6% over the previous seven days and 1.7% within the last 24 hours to trade approximately at $68,000.
The Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the most significant outflow for Nov. 4, totaling $169.6 million, followed by a $138.3 million outflow from the ARK 21Shares Bitcoin ETF (ARKB).
Grayscale’s two Bitcoin funds collectively recorded $153.2 million in outflows.
The Grayscale Bitcoin Trust (GBTC), which has had only a few net inflow days this year, reported $63.7 million in outflows, while its mini GBTC registered $89.5 million in outflows. These figures respectively represent the fifth and third largest outflows for that day.
The trading week ending Friday, Nov. 1, saw a net inflow of $2.2 billion into the US Bitcoin funds, including an outflow day of nearly $55 million to conclude the week.
CoinShares’ head of research, James Butterfill, noted that the inflows for most of the week were motivated by “the euphoria surrounding the prospect of a Republican victory.”
“As the polls have shifted, we observed minor outflows on Friday, underlining Bitcoin’s current sensitivity to the US elections,” he further commented.
According to FiveThirtyEight data from Nov. 4, Kamala Harris and Donald Trump are virtually tied in the polls, with Harris leading by 1.2 percentage points.
Trump’s chances of becoming president on the crypto betting platform Polymarket also experienced a significant correction, with his odds falling to a low of 53.8% on Nov. 3 after reaching a peak of 67% just a few days earlier on Oct. 30. His winning odds currently stand at slightly above 59%.
The Republican candidate is favored to win by the crypto industry due to his pro-crypto stance, leading some traders to speculate that Bitcoin could reach $100,000 if he secures the White House again.
US Bitcoin ETFs Record SecondLargest Daily Withdrawal Ahead of Election Eve