Bitcoin exchange-traded funds (ETFs) on Monday recorded the second-largest single-day net outflow since their launch in January. Cryptocurrency-based investment products saw their second consecutive red day ahead of the US elections, ending a seven-day positive streak.
Bitcoin ETFs record massive inflow day
US-listed spot Bitcoin (BTC) ETFs started the month on a negative note after recording two days of outflows. Investment products performed remarkably through most of October, seeing four consecutive green weeks and surpassing the $2 billion mark twice.
Last week, Bitcoin ETF registered Inflows worth $2.2 billion, resulting in positive performance of cryptocurrency investment products for the fourth week in a row. However, the funds saw a significant decline in net inflow from October 30 to October 31 as the price of Bitcoin struggled, going from $893.3 million in inflows to just $32.3 million.
On Friday, BTC ETFs saw their first red day since October 22, ending their seven-day streak with $54.9 million in outflows. Negative sentiment continued at the beginning of this week, as did Bitcoin-based investment products registered The second largest single-day net outflow since its launch in January.
The funds saw their biggest day of performance on May 2, with outflows of $563 million. Meanwhile, Bitcoin exchange-traded funds saw outflows of $541.1 million on Monday. Bitwise’s BITB, AKR Invest’s ARKB, and Grayscale’s Mini Trust (BTC) all reportedly saw record flow days on November 4.
BTC ETFs see $541 million in outflows on Nov. 4. Source: Farside Investors
according to Data From Farside Investors, BITB and BTC saw outflows of $79.8 million and $89.5 million, respectively, while ARB recorded negative net inflows of $138.3 million. However, Fidelity’s FBTC led yesterday’s losses with outflows of $169.6 million, its second-worst performance day.
BlackRock’s IBIT fund was the only BTC ETF to see positive net inflow yesterday, with inflows of $38.4 million.
BTC ETFs to continue to thrive
The massive outflows of Bitcoin ETFs occurred just one day before the US election. Experts agreed that market volatility and speculation surrounding the election outcome affected investment products.
On Tuesday interviewEric Balchunas, a Bloomberg analyst, noted that the election represents a major variable that could further impact Bitcoin’s price movement and the performance of ETFs.
However, he considers that the net inflow of investment products, amounting to $29 billion, has carried “real thinking” throughout this year’s two “downturns”, suggesting that Bitcoin ETFs will perform beyond all expectations in their first year, Even if the election result negatively affects the market.
Balchunas described ETFs as a “go-to vehicle” for traditional investors and a “disruptive force” that has “a great deal of spiritual connection” with Bitcoin. For the analyst, these connections make Bitcoin ETFs a powerful long-term combination.
Meanwhile, Matt Hogan, chief investment officer at Bitwise, said, It is considered “Cryptocurrencies have already won” regardless of the election outcome, but noted that a Trump win would be better for the market in the short term.
For Hogan, the only possible “bad” outcome is a Democratic sweep. However, he will remain optimistic about this scenario and will buy the dip as the past four years have taught him that “Washington cannot stop cryptocurrencies.”
Ultimately, Bitwise’s IT director emphasized that cryptocurrency-based ETFs will continue to see inflows, and the industry will continue to grow, even if the market slows.
Bitcoin is trading at $68,738 in the weekly chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com