BlackRock's Bitcoin ETF experiences sixth consecutive day of outflows amid US elections

The Bitcoin exchange-traded fund (ETF) from BlackRock has reported its sixth consecutive day of net outflows since its launch in January.

It seems that institutional investors have become risk-averse on U.S. election day, as the iShares Bitcoin Trust (IBIT) experienced an outflow of $44.2 million on November 5, according to CoinGlass.

This marks only the sixth instance of net outflows in the fund's brief history and the first since October 10, when it lost $10.8 million.

Overall, eleven U.S. spot Bitcoin ETFs have recorded net outflows totaling $116.8 million, primarily driven by a $68.2 million withdrawal from the Fidelity Wise Origin Bitcoin Fund (FBTC).

The only influx for the day occurred in the Bitwise Bitcoin ETF (BITB), which attracted $19.3 million into the fund.


Investment flows for BlackRock IBIT ETF. Source: Coinglass

This is also the third consecutive trading day where U.S. spot Bitcoin ETFs have seen outflows, occurring right after eleven funds reported their second-largest single-day withdrawals, which exceeded $541.1 million.

The spot cryptocurrency markets surged following the U.S. trading day when election results were announced, with Bitcoin (BTC) reaching $75,000, setting a new all-time high.

Henrik Andersson, the Chief Investment Officer at Apollo Crypto, stated, "Currently, Bitcoin is a pre-election trade for traders around the globe."

He assessed the probability of Donald Trump winning at 80–90%, based on betting markets and traditional sources.

"In our view, Bitcoin reflects this, and there's an 80% chance it could rise above the current level of 74,000 in the short term."

He predicted Bitcoin could hit $100,000 by year-end if Trump emerges victorious.

In a blog post from November 5, Nate Geraci, president of the ETF Store, remarked that the overall impact of elections on investments is often overstated. However, the regulatory environment, especially guidance from the SEC, can significantly affect ETF innovations, he added.

"No one can say for sure how all this will play out, and the best long-term solution would be implementing a bipartisan, comprehensive crypto framework, but it’s highly likely that these elections will influence the pace of innovation in cryptocurrency ETFs in one way or another."