TL;DR
- BlackRock’s Bitcoin ETF saw $44.2 million outflow following US election
- US Bitcoin ETFs recorded collective losses of $116.8 million.
- Bitcoin hit an all-time high of $75,000 fueled by Trump’s victory.
The recent US election climate has generated considerable volatility in the cryptocurrency market, with Bitcoin exchange-traded funds (ETFs) reflecting investor caution.
On November 5, BlackRock’s Bitcoin ETF, which launched in January of this year, saw a significant outflow of $44.2 million, marking its sixth day of net withdrawals since its inception.
According to reported data, the last time this fund recorded an outflow was on October 10, when $10.8 million was withdrawn.
The capital outflow from BlackRock‘s ETF was not an isolated case.
Bitcoin (BTC) ETFs in the United States collectively showed net losses of $116.8 million on the day.
The hardest hit fund was the Fidelity Wise Origin Bitcoin Fund, with a withdrawal of $68.2 million.
On the other hand, the only ETF that recorded a positive flow was Bitwise, which attracted $19.3 million, amid a risk-reduction trend adopted by institutional investors.
This information was obtained through analysis of the report published by Alexander Zdravkov.
Meanwhile, despite the capital outflow from funds, the price of Bitcoin registered a significant rise, reaching an all-time high of $75,000 as election results showed a possible victory for Donald Trump.
This sudden rise seems to align with some analysts expectations about the positive impact of a second Trump term on the value of Bitcoin.
Henrik Andersson, chief investment officer at Apollo Crypto, noted that if this victory is consolidated, Bitcoin could reach $100,000 by the end of the year.
Impact of elections and possible regulation on Bitcoin ETFs
For some experts, the election result could have significant effects on the cryptocurrency sector.
ETF Store’s Nate Geraci suggests that while the impact of election results on investments is often overstated, any change in leadership at the Securities and Exchange Commission (SEC) could significantly influence the future of cryptocurrency ETFs.
The SEC‘s regulatory stance on these financial products has been a key issue in the development of this industry, and any changes to its structure or policies could alter the dynamics of BTC ETFs in the market.
For now, Bitcoin funds in the United States seem to reflect the uncertainty that prevails in financial markets.
The recent volatility shows that institutional investors remain cautious, likely waiting for greater clarity in both political and regulatory terms before committing new capital to these products.
As the political landscape stabilizes, SEC decisions are expected to play a crucial role in strengthening or weakening cryptocurrency ETFs.
