Key Takeaways
- • U.S. spot crypto ETFs recorded more than $500 million in combined net outflows on Thursday, led by Fidelity's FBTC at $199.9 million, followed by BlackRock's IBIT at $105 million and Grayscale's GBTC at $49.9 million, according to data compiled by The Block.
- • Combined net outflows across major U.S. crypto ETFs exceeded $1.1 billion for the week as a post-midterm market reversal hit digital assets and technology stocks together.
- • Bitcoin fell 5.6%, ether dropped 7.8% and the GMCI 30 index declined 6.4% on Thursday, giving up an earlier 4% bitcoin gain from Wednesday.
- • Ethereum products saw sharp redemptions led by BlackRock's ETHA and ETHB, while Solana, Zcash and Hyperliquid ETFs also posted outflows; XRP ETFs were the only segment with zero flows.
- • Investors are weighing possible restrictions on AI infrastructure buildout after Democrats swept the House and Senate, with the Nasdaq Composite down 5.5% and the S&P 500 down 4.4%.
Summary
U.S. spot crypto ETFs posted heavy withdrawals as a broad market reversal following the U.S. midterm elections drove risk appetite lower across digital assets and equities. The Block reported more than $500 million in combined net outflows on Thursday, while Traders Union put combined net outflows across major U.S. crypto ETFs above $1.1 billion for the week.
Bitcoin funds led redemptions. Fidelity's FBTC recorded $199.9 million in outflows, BlackRock's IBIT $105 million and Grayscale's GBTC $49.9 million. Franklin Templeton's EZBC, VanEck's HODL and Ark Invest's ARKB also posted net outflows, while the remaining bitcoin ETFs showed zero flows for the day.
Ethereum products faced sharp redemptions, led by BlackRock's ETHA and ETHB, with Fidelity's FETH and Grayscale's ETHE also declining. Smaller segments weakened as well: U.S. Solana ETFs saw combined outflows of $1.2 million, Zcash ETFs lost $11 million and Hyperliquid ETFs $3 million, while XRP ETFs were the only group registering zero flows.
Prices fell in step with the fund flows. Bitcoin dropped 5.6% on Thursday after a 4% gain on Wednesday, ether fell 7.8% and the GMCI 30 index of the top 30 cryptocurrencies declined 6.4%. Equities also weakened, with the Nasdaq Composite down 5.5% and the S&P 500 down 4.4%. Investors are weighing the effect of possible restrictions on AI infrastructure buildout after Democrats swept both the House and Senate, extending the sell-off beyond digital assets.
Bitcoin funds led redemptions. Fidelity's FBTC recorded $199.9 million in outflows, BlackRock's IBIT $105 million and Grayscale's GBTC $49.9 million. Franklin Templeton's EZBC, VanEck's HODL and Ark Invest's ARKB also posted net outflows, while the remaining bitcoin ETFs showed zero flows for the day.
Ethereum products faced sharp redemptions, led by BlackRock's ETHA and ETHB, with Fidelity's FETH and Grayscale's ETHE also declining. Smaller segments weakened as well: U.S. Solana ETFs saw combined outflows of $1.2 million, Zcash ETFs lost $11 million and Hyperliquid ETFs $3 million, while XRP ETFs were the only group registering zero flows.
Prices fell in step with the fund flows. Bitcoin dropped 5.6% on Thursday after a 4% gain on Wednesday, ether fell 7.8% and the GMCI 30 index of the top 30 cryptocurrencies declined 6.4%. Equities also weakened, with the Nasdaq Composite down 5.5% and the S&P 500 down 4.4%. Investors are weighing the effect of possible restrictions on AI infrastructure buildout after Democrats swept both the House and Senate, extending the sell-off beyond digital assets.
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