As of November 4, 2024, there has been a notable decline in spot Bitcoin and Ethereum ETFs in the US. According to Spot On Chain data, significant capital outflows were observed from both Bitcoin and Ethereum ETFs. A total of $540.9 million was recorded from Bitcoin ETFs and $63.2 million from Ethereum ETFs. These outflows are thought to be related to investors moving away from these assets due to the uncertainty created by the US Presidential elections.
The only exception among Bitcoin ETFs was BlackRock’s IBIT ETF. Unlike other Bitcoin ETFs, BlackRock’s ETF saw a positive inflow of $38.6 million. However, other major players failed to follow this positive performance. For example, Fidelity’s FBTC ETF saw a major outflow of $169.6 million, while ARK 21Shares’ ARKB ETF saw losses of $138.3 million. This negative picture is considered a reflection of general market insecurity and uncertainty.
Ethereum ETFs also showed a similar downward trend. Only BlackRock’s ETHA ETF saw positive inflows of $11 million, while Grayscale, Fidelity, and Grayscale Mini ETFs saw outflows of $10.8 million, $31.5 million, and $31.9 million, respectively. These developments suggest that Ethereum ETFs are also negatively affected by market uncertainty.
In parallel with the volatility in the cryptocurrency market, investors’ shift away from spot ETFs is largely attributed to economic uncertainty stemming from the US presidential election. Experts say these outflows are an indication of changes in investor sentiment.
It is currently stated that Republican candidate Donald Trump is almost certain to win the presidential election. Analysts predict that cryptocurrency markets and ETFs will recover and re-entry into the market will begin once Trump takes office. Therefore, it is estimated that investor behavior will revive and market activity will increase if uncertainties decrease.
