Bitcoin ETFs Record $541M in Net Outflows, Second Highest Ever

The United States spot Bitcoin exchange-traded funds (ETFs) recorded a $541 million in net outflow on November 4. This is the second-largest outflow seen in a day, trailing May 1, with over $563.7 million withdrawn from the BTC product.

Second Largest Outflow

According to public data from SoSoValue, eight of the 12 spot Bitcoin ETF products in the country recorded outflows. Fidelity’s FBTC led the outflow record with $169.6 million. Ark & 21Shares’ ARKB trailed FBTC with an outflow worth $138.26 million. Grayscale’s recently introduced BTC scored third in net outflow, parting ways with $89.49 million worth of BTC ETF.

Other ETF products that saw outflows were Bitwise’s BITB, Grayscale’s GBTC, Franklin Templeton’s EZBC, VanEck’s HODL, and Valkyrie’s BRRR. On the other hand, Invesco’s BTCO, WisdomTree’s BTCW, and Hashdex’s DEFI saw no flows yesterday.

It is worth noting that yesterday, BlackRock’s IBIT saw a $38.42 million inflow, taking its net inflow to $26.17 billion.

Since its debut in the U.S. in January, the spot Bitcoin ETF has netted a cumulative net inflow of $23.61 billion. The total net assets issuers manage is $67.44 billion, worth 5.06% of Bitcoin’s market capitalization.

What Likely Triggered the Outflow?

The fund saw incredible inflows worth $2.2 billion last week. However, the latest outflow record comes amid BTC’s price drop below the $70,000 price mark. No single factor can be pinpointed as the driver behind the current outflow. Still, investors are taking profits from last week’s bullish streak.

Also, users are likely withdrawing from the Bitcoin-backed ETF due to uncertainty about the United States presidential election, which is set to occur today. Market participants are concerned about the outcome of the election and its potential impact on the crypto market.

Still, some analysts believe that BTC’s value will exchange hands with $200,000 by the end of next year, regardless of the outcome of the U.S. election. At the time of writing, the leading cryptocurrency traded at $68,800.