Key Takeaways
- • U.S. spot Bitcoin ETFs recorded $115.6 million in net outflows in the latest session, led by BlackRock's iShares Bitcoin Trust (IBIT) at $95 million and the Grayscale Bitcoin Mini Trust at $52.6 million, according to Farside Investors data.
- • The latest outflows follow roughly $1.04 billion in combined net outflows on Oct. 30 and Nov. 2, with IBIT alone accounting for $405 million of the Nov. 2 withdrawals, per Bloomberg data.
- • Bitcoin rose 1.28% to about $77,805 despite the ETF selling, while Bitcoin futures recorded $2.7 billion in net aggressive selling over seven sessions, per CoinMarketCap research head Alice Liu.
- • Investors are pricing in midterm election risk to the CLARITY Act, which stalled in the Senate in September, and security concerns following the Oct. 29 Binance hack attributed to North Korean hackers.
- • Bitwise's Bitcoin ETF (BITB) took in $21.9 million, the largest single-session inflow, while Fidelity's FBTC added $6.8 million.
Summary
U.S. spot Bitcoin exchange-traded funds posted $115.6 million in net outflows in the latest trading session, according to Farside Investors data published Nov. 4. BlackRock's iShares Bitcoin Trust (IBIT) accounted for the bulk of the withdrawals at $95 million, while the Grayscale Bitcoin Mini Trust (BTC) lost $52.6 million. Inflows elsewhere in the complex were led by Bitwise's Bitcoin ETF (BITB) at $21.9 million, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) at $6.8 million and the Morgan Stanley Bitcoin Trust (MSBT) at $3.3 million. Twelve funds reported flows for the session.
The outflows extend a heavier stretch of selling. Per Bloomberg data, U.S.-listed spot Bitcoin funds shed roughly $1.04 billion in combined net outflows on Oct. 30 and Nov. 2. IBIT alone lost $405 million on Nov. 2 and $233.7 million on Oct. 30, when FBTC recorded $201 million in outflows, ARK 21Shares Bitcoin ETF (ARKB) shed $129.5 million and BITB saw $25.7 million leave.
Bitcoin nonetheless firmed, rising 1.28% over 24 hours to trade at $77,805.26 on Binance's BTC/USDT pair. Market observers attribute the retreat to two factors. The first is political: the Trump administration's crypto-friendly agenda, including a proposed Strategic Bitcoin Reserve and the GENIUS Act, had supported the sector, but the CLARITY Act failed to advance in the Senate in September. A shift in congressional control after the midterms could lengthen negotiations and bring tighter oversight, consumer protections, stricter measures against illicit transactions and limits on public officials' involvement with crypto firms. Industry representatives remain cautiously optimistic about a bipartisan agreement on crypto taxation. The second factor is security, as the Oct. 29 hack of Binance, which the exchange attributed to North Korean hackers, has heightened concerns about crypto market safety.
Derivatives positioning points to caution among leveraged traders. Bitcoin futures recorded $2.7 billion in net aggressive selling over seven sessions even as spot markets registered net buying, according to Alice Liu, head of research at CoinMarketCap. Whether the fund withdrawals reflect election-related hedging, security-driven risk reduction or broader profit-taking remains unclear. Flows in the sessions after the election will indicate whether institutions are stepping back from Bitcoin or waiting for political and market uncertainty to ease. Existing spot Bitcoin ETP approvals would not automatically be reversed by a change in congressional control.
The outflows extend a heavier stretch of selling. Per Bloomberg data, U.S.-listed spot Bitcoin funds shed roughly $1.04 billion in combined net outflows on Oct. 30 and Nov. 2. IBIT alone lost $405 million on Nov. 2 and $233.7 million on Oct. 30, when FBTC recorded $201 million in outflows, ARK 21Shares Bitcoin ETF (ARKB) shed $129.5 million and BITB saw $25.7 million leave.
Bitcoin nonetheless firmed, rising 1.28% over 24 hours to trade at $77,805.26 on Binance's BTC/USDT pair. Market observers attribute the retreat to two factors. The first is political: the Trump administration's crypto-friendly agenda, including a proposed Strategic Bitcoin Reserve and the GENIUS Act, had supported the sector, but the CLARITY Act failed to advance in the Senate in September. A shift in congressional control after the midterms could lengthen negotiations and bring tighter oversight, consumer protections, stricter measures against illicit transactions and limits on public officials' involvement with crypto firms. Industry representatives remain cautiously optimistic about a bipartisan agreement on crypto taxation. The second factor is security, as the Oct. 29 hack of Binance, which the exchange attributed to North Korean hackers, has heightened concerns about crypto market safety.
Derivatives positioning points to caution among leveraged traders. Bitcoin futures recorded $2.7 billion in net aggressive selling over seven sessions even as spot markets registered net buying, according to Alice Liu, head of research at CoinMarketCap. Whether the fund withdrawals reflect election-related hedging, security-driven risk reduction or broader profit-taking remains unclear. Flows in the sessions after the election will indicate whether institutions are stepping back from Bitcoin or waiting for political and market uncertainty to ease. Existing spot Bitcoin ETP approvals would not automatically be reversed by a change in congressional control.
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