On Monday, Bitcoin exchange-traded funds (ETFs) registered their second largest one-day outflow since their launch in January. Crypto-based investment products saw their second consecutive red day ahead of the US election, ending a seven-day streak.
Bitcoin ETFs Record Big Day Outflow
US-listed Bitcoin (BTC) ETFs have had a rough start to the month after recording two breakout days. Investment products performed remarkably well for most of October, seeing four consecutive weeks in the green and surpassing the $2 billion mark twice.
Last week, the Bitcoin ETF recorded $2.2 billion in inflows, leading to the best performance of crypto investment products for the fourth straight week. However, the funds saw a significant decrease in net flows from October 30 to October 31 as the price of Bitcoin struggled, from $893.3 million in revenue to only $32.3 million.
On Friday, BTC ETFs had their first day in the red since October 22, ending a seven-day streak with $54.9 million in outflows. The negative sentiment continued earlier this week, as Bitcoin-based investment products registered their second largest one-day outflow since their launch in January.
These funds saw their biggest day in the red on May 2, with $563 million in outflows. Meanwhile, Bitcoin ETFs saw $541.1 million in outflows this Monday. Bitwise’s BITB, AKR Invest’s ARKB, and Grayscale’s Mini Trust (BTC) reportedly had record exit dates 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 outflows. Still, Fidelity’s FBTC led yesterday’s losses with a $169.6 million outflow, its second-worst day.
BlackRock’s IBIT was the only BTC ETF to see positive net inflows yesterday, with inflows of $38.4 million.
BTC ETFs To Continue To Thrive
The Bitcoin ETF’s biggest exit happened just one day before the US election. Experts agreed that market volatility and speculation about the outcome of the election had an impact on investment products.
In an interview on Tuesday, Bloomberg analyst Eric Balchunas noted that the election is a major variable that could further impact Bitcoin’s price performance and the performance of ETFs.
Nevertheless, he observes that the total flow of investment products, which is 29 billion dollars, has caught “real imagination” amid “several conflicts” seen this year, suggesting that the performance of BTC ETFs will exceed all expectations in its first year, even if the result election has a negative impact on the market.
Balchunas called ETFs the “prime vehicle” for traditional investors and a “disruptive powerhouse” with “many spiritual connections” to Bitcoin. For an analyst, this correlation makes Bitcoins ETFs a strong long-term combination.
Meanwhile, the Chief Investment Officer (CIO) of Bitwise, Matt Hougan, considers that “crypto has already won” regardless of the outcome of the election but suggested that Trump’s victory would be better for the market in the short term.
For Hougan, the only “bad” outcome would be a Democratic sweep. However, he will remain firm in that stance and buy the dip as the past four years have taught him that “Washington cannot stop crypto.”
Finally, the CIO of Bitwise asserted that 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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