Bitcoin ETFs lose $541 million, biggest drop since May

As the U.S. presidential election approaches, the financial world is keeping a close eye on Bitcoin’s price, which has been fluctuating around the $68,000 mark. On Monday, U.S. Bitcoin ETFs saw a surprising shift, with $541 million pulled out in a single day—the biggest daily outflow since May and the second-largest since these funds started trading in January. This came right after a week of record inflows, as ETFs brought in $2.22 billion. In this article, we’ll explore why Bitcoin’s price is swinging and what the election results could mean for its future.

Bitcoin ETFs experience $541 million outflow, marking the biggest single-day drop since May

Fidelity Wise Origin Bitcoin Fund(FBTC): SoSoValue

On Monday, U.S. Bitcoin Spot ETFs saw a big shift, with $541 million flowing out—a record single-day drop since early May and the second-largest since these funds started trading back in January.

This comes right after a major week where the ETFs pulled in $2.22 billion, one of the largest weekly inflows they’ve seen so far.

According to Rachael Lucas, a crypto analyst with BTCMarkets, “After last week’s rush of investments, it’s pretty normal for investors to take some profits and tweak their portfolios, especially with market uncertainty in the air.” Many people are taking a cautious stance with the upcoming U.S. election and growing geopolitical concerns on the horizon.

Most of the Bitcoin ETFs saw net outflows, with Fidelity’s FBTC leading the pack, dropping by $169.6 million—a sizable outflow that ranks as its second-highest since launch. Other funds that saw big withdrawals included Ark and 21Shares’ ARKB at $138.26 million, Bitwise’s BITB at $79.84 million, and Grayscale’s GBTC and Mini Bitcoin Trust, which saw outflows of $63.66 million and $89.49 million. Franklin Templeton, VanEck, and Valkyrie ETFs also posted outflows.

BlackRock’s IBIT ETF was the only one to see net inflows on Monday, bringing in $38.42 million, which makes sense given it’s the largest Bitcoin ETF by assets.

Altogether, the 12 Bitcoin Spot ETFs traded about $2.22 billion on Monday, a bit less than Friday’s $3.09 billion, bringing their total net inflows to $23.61 billion.

Looking ahead, the election outcome could have a big impact on ETF flows,” reported The Block. “If the results suggest a more crypto-friendly political environment, we might see renewed interest and inflows, sparking a more positive market outlook. But if it looks like tighter regulations are coming, especially with a Democratic win, we could see more outflows as investors pull back a bit.”

Bitcoin’s price has been bouncing around the $68,000 mark over the last day, now sitting close to $68,500, according to The Block’s price page. After the election results are in, investors will be watching closely as the Federal Open Market Committee meeting is just around the corner.