Bitcoin ETFs Face $54.9 Mln Outflow as BlackRock ETF Inflow Drop Ahead of US Election

Bitcoin jumped 14% in October, fueled by the hope of Trump’s potential return to office as a pro-crypto leader. But while Bitcoin climbed, Bitcoin Spot ETFs took a surprising hit on November 1, with $54.9 million in outflows breaking a streak of steady inflows. Even BlackRock’s popular IBIT fund saw no new inflows for the first time in a month. Are investors starting to pull back just days before Election Day approaches?

Blackrock ETF Inflows Hit Zero

Bitcoin exchange-traded funds (ETFs) in the U.S. reached a milestone this week, with record inflows of $893 million on October 31 alone. Meanwhile, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the charge, securing a staggering $875 million in just one day and bringing its total contributions close to $2.2 billion.

However, momentum shifted sharply just 3 days before the election results. With political shifts, total U.S. Bitcoin ETF inflows took a hit, showing $54.9 million in outflows according to Farside. 

Meanwhile, leading the outflow charge Fidelity reported $25.6 million in outflows, followed by ARK with $24.1 million, per Farside Investors data. On the other hand, the BlackRock Bitcoin ETF registered zero inflows for the first time in the past several trading sessions. 

These outflows come as digital assets face growing economic pressures and regulatory uncertainties, adding to investors’ concerns in an already turbulent market.

Bitcoin Price Analysis

Since the past few days, Bitcoin (BTC) has shown a strong rebound, peaking at around $73,300. On-chain data reveals that Bitcoin formed a “golden cross,” suggesting that even better days may be ahead.

A golden cross is a positive signal that occurs when the 30-day moving average crosses above the 365-day moving average. This pattern often indicates a potential continuation of a bullish trend, suggesting that a new rally might be on the horizon. As of now, Bitcoin’s price is at $69,591.07, following a slight dip of 0.93% in the last 24 hours.

As the U.S. elections approach, short-term implied volatility has surged to levels not seen in months, outpacing longer-term expectations and leading to a significant inversion in the market dynamics.