Bitcoin and Ethereum ETFs See Major Outflows

On November 4, 2024, significant withdrawals were reported for spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States. Data from Spot On Chain revealed that Bitcoin ETFs experienced outflows totaling approximately $540.9 million, while Ethereum ETFs faced withdrawals of about $63.2 million.

Did BlackRock’s ETF Perform Differently?

In contrast to the general trend, BlackRock’s IBIT ETF showcased a notable inflow of $38.6 million. Most other Bitcoin ETFs, however, encountered considerable losses. Fidelity’s FBTC ETF saw a withdrawal of $169.6 million, while ARK 21Shares’ ARKB ETF experienced outflows of $138.3 million. This disparity highlights BlackRock’s unique position in the current market.

Why Are Ethereum ETFs Struggling?

Ethereum ETFs mirrored the Bitcoin trend, with only BlackRock’s ETHA ETF managing a positive inflow of $11 million. Conversely, Grayscale’s, Fidelity’s, and Grayscale Mini ETFs reported outflows of $10.8 million, $31.5 million, and $31.9 million, respectively. This downturn suggests diminishing investor confidence in Ethereum spot ETFs.

The recent outflows are attributed to market uncertainties, particularly surrounding the upcoming U.S. presidential elections. Key conclusions include:

• Only BlackRock’s ETFs showed positive inflows in a challenging environment.
• Significant withdrawals from both Bitcoin and Ethereum ETFs indicate a trend of decreasing investor interest.
• Market volatility appears to be heavily influenced by political uncertainties.

As the political landscape evolves, particularly with Donald Trump emerging as a likely frontrunner, the cryptocurrency market may shift. Experts suggest that resolving election-related uncertainties could bolster confidence and lead to increased inflows into these financial instruments.