BTC ETFs Record Second-Largest Outflows Amid Market-Wide FUD

On November 4, U.S.-based spot Bitcoin (BTC) exchange-traded funds (ETFs) saw their second-largest net outflows on record, totaling $541.1 million. This follows the largest outflow from May 1, which reached $563.7 million.

Here’s a breakdown of the outflows:

• Fidelity’s FBTC and ARK 21Shares’ ARKB both saw significant outflows, totaling $169.6 million and $138.3 million, respectively.
• Grayscale’s GBTC and BTC funds also experienced significant outflows, amounting to $89.5 million and $63.7 million.
• Other funds, such as Bitwise’s BITB, Franklin Templeton’s EZBC, and VanEck’s HODL ETFs, also saw substantial withdrawals, with $79.8 million, $17.6 million, and $15.3 million in outflows.
• Valkyrie’s BRRR ETF recorded $5.7 million in outflows.

Despite these widespread outflows, BlackRock’s BITB fund bucked the trend, experiencing a $38.4 million inflow. The BITB fund has been relatively resilient, with only five days of outflows since its launch in January, with the largest withdrawal being $36.9 million six months ago.

The large outflows from Bitcoin and Ethereum ETFs come amid broader market fear, uncertainty, and doubt (FUD). The cautious investor sentiment is likely being driven by the anticipation of the U.S. presidential elections, which are set to begin today.

This FUD and the outflows have had a negative impact on Bitcoin’s price, which dropped 1% in the last 24 hours, bringing it to around $68,300. Similarly, Ethereum (ETH) also saw a decline of 1.6%, trading just above $2,400 at the time of writing.

As a result of the drop in the two leading cryptocurrencies, the global crypto market cap experienced a 2.5% decline, falling to $2.38 trillion, which wiped $33 billion off the total market value.

This outflow trend and the broader market downturn signal a cautious approach among investors, likely influenced by external factors such as the political climate and the uncertainty surrounding the upcoming elections.