Bitcoin ETF Inflows Pause as U.S. Election Uncertainty Rises

On Friday, U.S. spot Bitcoin ETFs experienced a sudden drop in inflows, marking a shift just three days before the U.S. election results.

Total outflows hit $55 million across nine Bitcoin ETFs, halting what had been a steady rise in demand. This trend aligns with the shifting election landscape, where Kamala Harris is gaining ground in key swing states while Donald Trump maintains leads in others, adding to investor uncertainty.

The BlackRock Bitcoin ETF (IBIT), which has dominated ETF inflows recently, bringing in nearly $2.2 billion over the past month alone, saw zero new inflows for the first time in weeks.

This change signals a potential pause in investor interest after a record-breaking period. Fidelity’s Bitcoin ETF reported $25.6 million in outflows, and ARK’s ETF followed closely with $24.1 million, according to data from Farside.

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These ETFs now hold over 1 million Bitcoin, representing more than 5% of the total supply, with BlackRock’s IBIT alone responsible for around 2% of all circulating BTC.

The timing of these outflows suggests that some investors may be adopting a cautious approach as election dynamics unfold, taking a “wait-and-see” stance ahead of potential shifts in U.S. economic and regulatory policies. This pause comes after a period of high inflows, possibly reflecting uncertainty about the election’s impact on financial markets and the future of crypto regulation.

Kosta Gushterov