Key Points
- U.S. spot bitcoin ETFs experienced their second-largest negative flow since January, with $541 million in net outflows on Monday, following last week’s substantial $2.22 billion inflows
- Trading volumes decreased significantly across both Bitcoin and Ethereum ETFs, with Bitcoin ETF trading dropping from $3.09 billion to $2.22 billion, suggesting cautious investor sentiment ahead of U.S. presidential election
Bitcoin ETF Market Shows Signs of Rebalancing
The cryptocurrency ETF market witnessed a significant shift on Monday as U.S. spot bitcoin ETFs recorded their largest daily outflow since May. According to data from SoSovalue, Eight of the spot bitcoin ETFs experienced net outflows, with Fidelity’s FBTC leading the decline at $169.6 million. Notable outflows were also seen from Ark and 21Shares’ ARKB ($138.26 million) and Bitwise’s BITB ($79.84 million). BlackRock’s IBIT stood as the sole exception, attracting $38.42 million in net inflows.
Market Response and Election Impact
Bitcoin’s price has maintained relative stability around the $68,000 level, settling near $68,500. Market analysts suggest the outflows reflect a natural rebalancing following recent record inflows, with investors adopting a cautious stance ahead of the U.S. presidential election. The market’s future direction could be significantly influenced by the election outcome, with potential implications for regulatory policy affecting investor sentiment.
Ethereum ETFs Face Similar Pressure
The bearish sentiment extended to the Ethereum market, with spot ether ETFs recording their largest net outflow in six weeks at $63.22 million. Fidelity’s FETH and Grayscale’s Mini Ethereum Trust were the most affected, each experiencing outflows exceeding $31 million. Despite the overall negative trend, BlackRock’s ETHE managed to attract $11 million in net inflows, demonstrating some resilience in the market. Trading volume for ether ETFs decreased to $149.11 million from $169.11 million, reflecting broader market caution.
