BTC and ETH ETFs Witness Record Inflows and Outflows Amid U.S. Election Turbulence

According to SpotOnChain data, BTC and ETH ETFs saw substantial fluctuations, reflecting investor reactions to the changing U.S. political landscape. The week of November 4 to 8, 2024, marked one of the most volatile periods for Bitcoin (BTC) and Ethereum (ETH) ETFs. Political events, including President Donald Trump’s electoral victory, spurred significant inflows and outflows. 

Spot ETF: $1.63B to $BTC and $154.6M to $ETH
Week: 4 to 8 November 2024

The BTC and ETH ETFs have just experienced a volatile trading week, with several top inflows and outflows recorded amid the #USelection and President Trump’s win.

Specifically, BTC ETFs… pic.twitter.com/5SKgs3PZ4j

— Spot On Chain (@spotonchain) November 9, 2024

Bitcoin ETFs witnessed unprecedented movements during this week, with a net inflow of $1.63 billion into BTC, driven largely by strategic acquisitions from institutional investors. BlackRock’s iShares Bitcoin Trust (IBIT) alone added a remarkable 16,254 BTC, valued at approximately $1.25 billion, propelling its total BTC holdings to 449,967 BTC, worth around $34.4 billion. This increase means BlackRock’s BTC holdings now surpass its gold reserves, marking a shift in asset preference.

The week saw a historic fluctuation in Bitcoin ETF flows, with the second-largest recorded outflow on November 4 and the largest inflow ever on November 7. These significant movements highlight the ETF market’s responsiveness to macroeconomic and political shifts, especially as the BTC price hit highs of nearly $80,000 during the trading week. 

Ethereum ETFs Mirror Volatility, Reflecting Broader Market Implications

Ethereum ETFs also experienced turbulent inflows and outflows, albeit on a smaller scale than BTC. Over the week, Ethereum ETFs attracted a net inflow of $154.6 million, with notable entries recorded on November 7 and 8, marking the 3rd- and 4th-largest inflows in ETH ETF history. Despite the strong buying interest, November 4 saw the 7th-largest outflow from ETH ETFs, emphasizing the volatile market sentiment.  These movements underscore Ethereum’s resilience amid uncertainty. Following the inflows and outflows, its price maintained stability at around $2,500.

The recent inflows into BTC and ETH ETFs indicate heightened interest from institutional investors, further validating cryptocurrency’s role as an alternative asset class amid economic and political changes. Analysts suggest that BlackRock’s growing BTC holdings reflect a broader shift among institutional investors, increasingly viewing digital assets as a hedge comparable to traditional assets like gold.

These record inflows and outflows, occurring amid a contentious election, reflect the sensitivity of cryptocurrency markets to global events. As the post-election period unfolds, industry observers anticipate continued volatility in crypto ETFs, driven by institutional activity and investor sentiment surrounding regulatory developments.