Key Takeaways
- • U.S.-listed spot Bitcoin ETFs saw approximately $1.04 billion in combined net outflows on Oct. 30 and Nov. 2, according to Bloomberg data.
- • BlackRock's iShares Bitcoin Trust (IBIT) accounted for $405 million of the withdrawals on Nov. 2, and $233.7 million on Oct. 30 per Farside Investors data.
- • Fidelity's FBTC recorded $201 million in outflows on Oct. 30 but attracted about $6.7 million in fresh capital on Nov. 2, showing divergence across funds.
- • Investors cite midterm election uncertainty and the stalled CLARITY Act, which failed to advance in the Senate in September, as regulatory headwinds for crypto.
- • Bitcoin futures recorded $2.7 billion in net aggressive selling over seven sessions, per CoinMarketCap research head Alice Liu, even as spot markets registered net buying.
Summary
U.S.-listed spot Bitcoin ETFs recorded roughly $1.04 billion in combined net outflows over two trading sessions, Oct. 30 and Nov. 2, according to Bloomberg data. BlackRock's iShares Bitcoin Trust (IBIT) led the withdrawals, losing $233.7 million on Oct. 30 and $405 million on Nov. 2, per Farside Investors. Fidelity's Wise Origin Bitcoin Fund (FBTC) shed $201 million on Oct. 30, while ARK 21Shares' ARKB lost $129.5 million and Bitwise's BITB saw $25.7 million in withdrawals on that date. On Nov. 2, FBTC attracted approximately $6.7 million in new capital, suggesting investors are not exiting Bitcoin vehicles uniformly.
The outflows coincide with heightened uncertainty around the U.S. midterm elections. President Donald Trump's crypto-friendly agenda, including the proposed Strategic Bitcoin Reserve and the GENIUS Act, established a more supportive regulatory backdrop. However, the CLARITY Act, the industry's next major legislative priority, failed to advance in the Senate in September. A shift in congressional control could complicate efforts to revive it and could increase scrutiny of exchanges, custodians and stablecoin issuers. Existing spot Bitcoin ETP approvals would not automatically be reversed by a change in congressional control, according to the report.
Additional pressure stems from the Oct. 29 Binance hack, which the exchange attributed to North Korean hackers. Bitcoin traded near $77,000 on Tuesday after its latest decline. Per CoinMarketCap research head Alice Liu, Bitcoin futures saw $2.7 billion in net aggressive selling over seven sessions, even as spot markets registered net buying, suggesting leveraged traders are reducing exposure while spot participants continue accumulating. The drivers of the withdrawals remain unclear, and subsequent post-election fund flows may indicate whether institutional investors are stepping back or waiting for uncertainty to subside.
The outflows coincide with heightened uncertainty around the U.S. midterm elections. President Donald Trump's crypto-friendly agenda, including the proposed Strategic Bitcoin Reserve and the GENIUS Act, established a more supportive regulatory backdrop. However, the CLARITY Act, the industry's next major legislative priority, failed to advance in the Senate in September. A shift in congressional control could complicate efforts to revive it and could increase scrutiny of exchanges, custodians and stablecoin issuers. Existing spot Bitcoin ETP approvals would not automatically be reversed by a change in congressional control, according to the report.
Additional pressure stems from the Oct. 29 Binance hack, which the exchange attributed to North Korean hackers. Bitcoin traded near $77,000 on Tuesday after its latest decline. Per CoinMarketCap research head Alice Liu, Bitcoin futures saw $2.7 billion in net aggressive selling over seven sessions, even as spot markets registered net buying, suggesting leveraged traders are reducing exposure while spot participants continue accumulating. The drivers of the withdrawals remain unclear, and subsequent post-election fund flows may indicate whether institutional investors are stepping back or waiting for uncertainty to subside.
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