Since its inception in January, BlackRock’s spot Bitcoin exchange-traded fund (ETF) has experienced its sixth consecutive net outflows on US election day.
According to CoinGlass, the iShares Bitcoin Trust (IBIT) experienced an outflow of $44.2 million on Nov. 5, suggesting that institutional investors in the United States were taking a risk-off approach on election day.
Nevertheless, this is the inaugural net outflow for the ETF since Oct. 10, when $10.8 million departed the fund, and it is only the sixth day in its brief tenure.
The 11 US spot Bitcoin ETFs experienced net outflows of $116.8 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) contributing $68.2 million.
The Bitwise Bitcoin ETF (BITB) experienced the sole inflow of the day, with $19.3 million entering the fund.
A day after the 11 funds experienced their second-largest day of outflows, which exceeded $541.1 million, the US spot Bitcoin ETFs experienced an outflow for the third consecutive trading day.
Following the conclusion of the US trading day, spot crypto markets experienced a significant increase in response to the country’s election results. Bitcoin reached a new all-time high of $75,000.
Henrik Andersson, the chief investment officer of Apollo Crypto, stated to Cointelegraph that “Bitcoin is currently the election trade for traders globally.”
By analyzing wagering markets and conventional sources, he determined that the likelihood of a Donald Trump victory ranged from 80% to 90%.
“Bitcoin is in our view mirroring this, it might, in the short term, have done 80% of the move already where it is now at above 74,000.”
He anticipated that Bitcoin would surpass $100,000 by the year’s conclusion if Trump emerged victorious.
Nate Geraci, president of ETF Store, stated in a blog post on Nov. 5 that the general effect of the elections on investments is frequently exaggerated.
He acknowledged that the regulatory environment, particularly the Securities and Exchange Commission (SEC) leadership, can substantially impact the development of exchange-traded funds (ETFs).
“Nobody knows for sure how this all might play out–and the best longer-term solution is the implementation of a bipartisan, comprehensive crypto framework–but it seems highly likely this election will affect the speed of crypto ETF innovation one way or another.”
