On Monday, spot Bitcoin exchange-traded funds (ETFs) registered their second-largest single-day net outflow since their launch in January. The crypto-based investment products saw their second consecutive red day before the US elections, ending a seven-day positive streak.
Bitcoin ETFs Record Massive Outflow Day
US-listed spot Bitcoin (BTC) ETFs started the month negatively after recording two days of outflows. The investment products performed remarkably for most of October, seeing four consecutive green weeks and surpassing the $2 billion mark twice.
Last week, Bitcoin ETF recorded $2.2 billion in inflows, leading the crypto investment productsโ positive performance for the fourth week straight. However, the funds saw a significant net flow decrease from October 30 to October 31 as Bitcoinโs price struggled, going from $893.3 million in inflows to only $32.3 million.
On Friday, BTC ETFs had their first red day since October 22, ending their seven-day streak with $54.9 million in outflows. The negative sentiment continued at the start of this week, as Bitcoin-based investment products registered the second-largest single-day net outflow since their launch in January.
The funds saw their largest red-performing day on May 2nd, with $563 million in outflows. Meanwhile, Bitcoin ETFs saw $541.1 million in outflows this Monday. Reportedly, Bitwiseโs BITB, AKR Investโs ARKB, and Grayscaleโs Mini Trust (BTC) had record outflow days on November 4.
BTC ETFs see $541 million in outflows on Nov. 4. Source: Farside Investors
According to data from Farside Investors, BITB and BTC saw $79.8 million and $89.5 million in outflows, respectively, while ARB registered $138.3 million in negative net flows. Nonetheless, Fidelityโs FBTC led yesterdayโs losses with $169.6 million in outflows, its second worst-performing day.
BlackRockโs IBIT was the only BTC ETF to see a positive net flow yesterday, with $38.4 million in inflows.
BTC ETFs To Continue Thriving
Bitcoin ETFsโ massive outflows occurred just one day before the US elections. Experts concurred that the market volatility and speculation surrounding the electionโs outcome have affected the investment products.
In a Tuesday interview, Bloomberg analyst Eric Balchunas noted that the election is a big variable that could further impact Bitcoinโs price action and ETFsโ performance.
Nonetheless, he considers that the investment productsโ net flow, which is at $29 billion, has held โreal thoughtโ throughout the โcouple of downturnsโ seen this year, suggesting BTC ETFsโ performance will surpass all expectations for its first year, even if the electionโs outcome negatively impacts the market.
Balchunas called ETFs the โpremier vehicleโ for traditional investors and a โdisruptive powerhouseโ that has โa lot of spiritual connectionโ with Bitcoin. To the analyst, these connections make Bitcoins ETFs a strong long-term combination.
Meanwhile, Bitwiseโs Chief Investment Officer (CIO), Matt Hougan, considers that โcrypto has already wonโ regardless of the electionโs outcome but suggested that a Trump victory would be better for the market in the short term.
To Hougan, the only possible โbadโ outcome would be a Democratic sweep. However, he would remain bullish on that scenario and buy the dip as the past four years have taught him that โWashington canโt stop crypto.โ
Ultimately, Bitwiseโs CIO asserted that spot crypto-based ETFs will continue to see inflows, and the industry will continue to grow, even if the market slows down.
Bitcoin is trading at $68,738 in the weekly chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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