November 5 is here, and all attention is on the United States as the country heads to the polls to elect its next president. This decision will shape the nation’s policies and influence financial markets, leaving investors wondering whether the U.S. will continue with Democratic leadership or switch back to a Republican administration. Against this backdrop, let’s take a closer look at how investors approached the last full trading day before the election, especially in the world of cryptocurrency ETFs.
Bitcoin and Ethereum ETFs, in particular, saw interesting movement as traders adjusted their strategies, anticipating that election outcomes could bring further market fluctuations. Here’s what went down and what it might signal for crypto investors in the near future.
Bitcoin ETF Surge Stalls
In recent weeks, spot Bitcoin ETFs had been experiencing a strong streak of net inflows, starting October 10. Last week alone saw a record-breaking $2.2 billion in inflows—the highest since mid-March—hinting at rising interest and positive sentiment for Bitcoin.
But on Monday, the momentum paused. Outflows reached $54.9 million, a hint that investors were beginning to reconsider their positions. This trend deepened on November 4, with net outflows jumping to $541.1 million, marking the highest level of withdrawals since May 1, when outflows peaked at $563.7 million. Nearly every fund recorded net outflows, with Fidelity’s FBTC and Ark Invest’s ARKB taking the largest hits, with outflows of $169.6 million and $138.3 million, respectively.
One exception stood out: BlackRock’s IBIT fund, which bucked the trend with $38.4 million in net inflows. The fact that BlackRock’s ETF attracted investments when most others faced losses may indicate continued institutional confidence in the firm’s long-term approach to Bitcoin.
These outflows had an immediate impact on Bitcoin’s price, which dropped from over $69,000 to a weekly low of $66,800. Although it has since rebounded slightly to around $67,800, Bitcoin is still down nearly $5,000 from its peak last week. With election results expected shortly, more price swings are likely as markets digest the outcome.
Ethereum ETFs Feel the Pressure
Ethereum ETFs, which have generally seen lower inflows compared to their Bitcoin counterparts, also faced a challenging day on November 4. Outflows spiked to $63.2 million, marking the largest single-day outflows for Ethereum ETFs since September 23, when withdrawals hit $79.3 million.
Leading the withdrawals were Fidelity’s FETH and Grayscale’s ETH ETFs, which saw outflows of $31.5 million and $31.9 million, respectively. Ethereum’s price reacted, dropping to $2,370. Though it has since recovered slightly to $2,420, it remains down 1.5% on the day and over 7% compared to last Tuesday.
Investor Mindset and Election Uncertainty
The large-scale ETF withdrawals on the day before the U.S. election reveal investor caution. The cryptocurrency market, which often reacts to major economic events, appears particularly sensitive to election-related uncertainty. Reducing exposure to high-risk assets like Bitcoin and Ethereum just before such a critical event reflects a wait-and-see approach from many investors.
This strategy shows that even as cryptocurrency ETFs gain mainstream interest, they remain vulnerable to broader political and economic trends. However, some investors may view any election-related volatility as a buying opportunity, potentially bringing new inflows once the outcome is clear.
Looking Ahead
With election results on the way, both Bitcoin and Ethereum prices are expected to remain sensitive to new information. As the market watches for a confirmed winner, prices could experience further volatility, depending on the anticipated policy shifts under new or continuing leadership.
For those interested in cryptocurrency ETFs, these next few days will reveal insights not only into price movements but also into how investor sentiment may shift in response to significant political developments.
