As November 5 approaches, the United States faces a critical moment in electing a new president. The world's attention is focused on this country, speculating whether it will continue along the Democratic path or return to the governance era of Republican candidate Donald Trump from four years ago.
In this context, observing the behavior of American investors on the last trading day before the election becomes particularly intriguing, especially in the regulated spot cryptocurrency ETF space.
Bitcoin ETF fund inflows are hindered
Since October 10, the Bitcoin ETF market has shown a positive trend, especially last week, with net inflows exceeding $2.2 billion, marking the best performance since mid-March. However, this winning streak turned on Friday, with net outflows reaching $54.9 million, also reflecting changes in market fund flows on Monday this week.
According to Farside data, on November 4, investors withdrew $541 million from the market, reaching the highest single-day net outflow since May 1 (when the net outflow was $563.7 million).
In this trend, most Bitcoin ETFs experienced fund outflows, with Fidelity's FBTC and Ark Invest's ARKB withdrawing $169.6 million and $138.3 million, respectively. In contrast, BlackRock's IBIT became the only highlight, with a single-day net inflow of $38.4 million.
As a result, Bitcoin's price fell from a high of over $69,000 to a weekly low of $66,800. Although Bitcoin's price subsequently rebounded to $68,000, it still fell nearly $5,000 from last week's high. In addition, it is expected that with the revelation of the U.S. election results, Bitcoin's price will face more severe volatility.
Ethereum ETF also follows closely behind
Meanwhile, the Ethereum spot ETF also faced setbacks in attracting investors, especially with yesterday's outflow reaching $63.22 million, marking the largest single-day net outflow since September 23, with a total of $79.21 million that day. Among them, Fidelity's FETH and Grayscale's ETH products recorded outflows of $31.5 million and $31.94 million, respectively.
Ethereum's price has also been affected by this trend, briefly dipping to $2,357 overnight. Although it has since rebounded to $2,414, it has formed a six-day decline on the daily chart. This performance reflects the market's lukewarm attitude towards the Ethereum ETF and highlights investors' sensitive reactions to market volatility.
Conclusion:
Against the backdrop of the globally watched U.S. election, the flow of funds and price fluctuations in the cryptocurrency market reveal subtle changes in investor sentiment. Political uncertainty has triggered the dual attributes of cryptocurrency as a safe haven and speculation. Moreover, investors' sensitivity and adaptability to market volatility also demonstrate the gradually maturing characteristics of the cryptocurrency market.
Therefore, we have reason to believe that as the election results become clearer, market turbulence will gradually subside. At that time, the digital asset sector is expected to welcome new development opportunities and further promote the healthy growth of this emerging asset class.
