BlackRock Bitcoin ETF Sees Outflows as U.S. Election Results Fuel Market Volatility

BlackRock's spot Bitcoin ETF experienced a significant outflow of $44.2 million on November 5, marking its sixth day of net withdrawals since its debut in January.

The outflow came as institutional investors appeared to adopt a risk-averse strategy following the U.S. election. This was the ETF’s first outflow since October 10, when $10.8 million was withdrawn.

The broader trend saw U.S. spot Bitcoin ETFs collectively lose $116.8 million, with the Fidelity Wise Origin Bitcoin Fund leading the losses at $68.2 million. In contrast, the Bitwise Bitcoin ETF was the only one to post an inflow, attracting $19.3 million.

This marks the third consecutive day of outflows for the U.S. Bitcoin ETFs, which had already faced their second-largest outflow day on November 4, totaling $541.1 million. However, as election results emerged, Bitcoin surged, reaching an all-time high of $75,000.

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Crypto Markets Surge After Donald Trump Wins U.S. Election

Henrik Andersson, CIO of Apollo Crypto, suggested that Bitcoin’s recent performance mirrored expectations of a potential Trump victory, predicting a rise to $100,000 by year’s end if Trump secures the win. Meanwhile, ETF Store’s Nate Geraci emphasized that while the election’s impact on investments is often exaggerated, regulatory changes – particularly in SEC leadership – could significantly shape the future of crypto ETFs.

Alexander Zdravkov