US Bitcoin ETFs Lose $500 Million in 1 Day as Crypto Traders Brace for Election Impact

Cryptocurrency exchange-traded funds (ETFs) had a negative day Monday, coinciding with Bitcoin's dip, as crypto traders and users brace for the impending impact

Cryptocurrency exchange-traded funds (ETFs) had a rough day Monday, coinciding with Bitcoin's dip, as crypto traders and users prepare for the broader impact of the U.S. elections on the financial market.

Both spot Bitcoin and Ethereum ETFs suffered a setback Monday, with BTC ETFs on the lower end of the spectrum, seeing hundreds of millions in outflows in a single day.

US Bitcoin ETFs Suffer Outflows of $500 Million in 1 Day

Data from London-based investment management firm Farside Investors showed that on Monday, U.S.-listed spot BTC ETFs collectively saw outflows of $541.1 million, with Fidelity's FBTC leading the pack ($169.6 million in outflows).

21Shares/ARK Invest's ARKB also saw outflows of $138.3 million Monday, followed by Grayscale's BTC, which saw outflows of $89.5 million. Bitwise's BITB also saw outflows of $79.8 million.

All other spot Bitcoin ETFs in the United States saw outflows, except BlackRock's IBIT, Invesco's BTCO, and Wisdom Tree's BTCW. In fact, IBIT saw inflows of $38.4 million, making it the only U.S.-listed BTC ETF that had positive flows on Monday.

US $ETH ETFs Also See Outflows

Ethereum ETFs listed in the U.S. also saw outflows on Monday, to the tune of $63.2 million, led by Grayscale's ETH, which saw outflows of nearly $32 million.

On the other hand, ETH ETFs were not hit as hard as their Bitcoin counterparts, as the majority of the funds saw zero flows – a much better scenario than experiencing massive outflows.

BlackRock continued its strong performance even in the Ethereum ETF space, as it was the only U.S. ETH ETF that saw inflows ($11 million) Monday, while Fidelity's FETH saw outflows of $31.5 million, and Grayscale's ETHE saw outflows of $10.8 million.

Crypto ETFs Falter as BTC Price Dips Ahead of Elections

The poor performance of crypto ETFs in the lead-up to the elections came as BTC prices had a volatile day. At one point on Monday, Bitcoin dipped as low as $66,800, according to data from CoinGecko.

The world's largest cryptocurrency by market value has since recovered slightly and is trading at around $68,800, but still down by 3% in the last seven days.

Meanwhile, on decentralized market prediction platform Polymarket, the event contract for the 2024 U.S. presidential election winner has attracted a massive bet of $3.2 billion, with Donald Trump leading Kamala Harris at 60.9% to 39.2% as of early Tuesday.

According to Bernstein analysts, BTC prices could surge to $90,000 if Trump wins the elections and might drop to $50,000 before recovering if Harris wins.