Crypto ETFs Post First Outflows Amid Market Decline

Jimmy Aki
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Crypto exchange-traded funds (ETFs) in the United States experienced their first net outflows since the recent election, marking a notable shift in market trends.

According to data from Farside Investors, spot Bitcoin ETFs recorded a net outflow of $400.7 million on November 14, while Ethereum ETFs saw a smaller but significant $3.2 million outflow.

Bitcoin and Ethereum See First ETF Outflows Since U.S. Elections

Bitcoin ETFs faced their largest single-day withdrawal in months, with Fidelity’s Bitcoin ETF leading the losses at $179.2 million. Other funds also saw substantial exits, including $161.7 million from ARK and 21Shares’ joint ETF and $113.9 million from Bitwise.

On the contrary, BlackRock’s iShares Bitcoin Trust ETF managed to buck the trend with $126.5 million in inflows, alongside a modest $2.5 million from VanEck’s fund.

Ethereum ETFs joined the downturn, with $3.2 million in net outflows recorded on November 14. This ended a streak of nearly $800 million in inflows since November 4. Grayscale’s Ethereum Trust ETF bore the brunt of the losses, posting outflows of $21.9 million.

However, BlackRock’s iShares Ethereum Trust ETF added $18.9 million, and Invesco’s ETH fund gained a modest $900,000 in the same period.

Bitcoin and Ethereum Prices Fall

The recent outflows come amid a broader market pullback for cryptocurrencies after the election victory of Donald Trump raised optimism that, in turn, surged the value of Bitcoin and other cryptocurrencies. This is driven by Trump’s statements supporting digital assets and blockchain innovation.

The so-called “Trump trade” spurred a wave of inflows, with Bitcoin ETFs experiencing their largest-ever daily inflow of $1.37 billion on November 7.

This surge was part of a six-day streak that added $4.7 billion to Bitcoin ETFs.
However, Bitcoin’s price, which soared nearly 30% to a high of $93,500 on November 13, has dropped by 2.39% over the past 24 hours, trading at $89,168 at press time.

Ethereum’s price dropped nearly 5% in the last 24 hours, trading below $3,100. This decline reflects growing uncertainty as the market adjusts to post-election realities.

Nevertheless, the rallying of Bitcoin to new all-time highs has created a landmark moment for the cryptocurrency market. Vishal Sacheendran, Binance’s head of regional markets, noted that this milestone underscores Bitcoin’s rising prominence and reliability.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.