Bitcoin ETF Inflows Drop: Will They Rebound Post US Election 2024

Bitcoin ETF Inflows Drop: Analyzing Rebound Post US Election 2024

The Spot Bitcoin ETF market had a challenging start to November 2024, witnessing a consecutive four-day outflow streak totaling hundreds of millions. Despite the recent surge in Bitcoin’s price, which reached a new all-time high (ATH) of $75,208.82 following the US election, Spot Bitcoin ETFs struggled with investor withdrawals.

Spot Bitcoin ETF Outflows Highlight

On November 5, Spot Bitcoin ETFs recorded a total net outflow of $116.90 million, contributing to a cumulative total net inflow of $23.50 billion. Despite this, the daily trading volume was significant, with $2.39 billion in value exchanged. The total net assets for Spot Bitcoin ETFs now stand at $69.28 billion, representing 5.04% of Bitcoin’s market capitalization. 

Source: SoSoValue

The recent withdrawals contrast with Bitwise Bitcoin ETF’s (BITB) performance, which recorded a positive inflow of $19.28 million on November 5. Other prominent Bitcoin ETF players, including BlackRock, Fidelity, and VanEck, faced outflows, while Grayscale and Invesco recorded neither inflows nor outflows.

US Election Boosts BTC Price to New ATH

The US election results have had a bullish impact on Bitcoin’s market, with BTC hitting a new ATH at $75,208.82. This surge in BTC price, driven by political developments, saw Bitcoin’s market cap climb to $1.48 trillion and daily volume spike to $86.03 billion. The election boost raises questions about future Bitcoin ETF inflows, with many speculating a reversal in the current outflow trend due to renewed investor interest in BTC and Spot Bitcoin ETFs.

The rising BTC price and the US election effect could signal a reversal in the outflow trend for Bitcoin ETFs, with potential for fresh net inflows.

As the post-election excitement settles, the renewed BTC price levels may invite higher investor interest in Spot Bitcoin ETFs. Investors may be wondering, “Why is Bitcoin going up?” as US political dynamics add to BTC’s momentum, possibly setting the stage for a more stable influx in Bitcoin ETF inflows in the near future.