US Spot Bitcoin ETFs Suffer Second-Largest Single-Day Outflow as Market Braces for Election Day and FOMC Meeting

US spot Bitcoin ETFs snapped their seven-day winning streak last Friday as Bitcoin dropped below $70,000 after trading near its all-time high earlier that week.

US spot Bitcoin ETFs suffered their second-largest single-day outflow since launch, with investors withdrawing a total of $541 million on November 4, according to data from Farside Investors.

The selloff just trailed behind the record of $563 million set on May 1, with investors continuing to dump their holdings amid a recent downturn in the flagship cryptocurrency.

Fidelity’s FBTC ETF experienced the heaviest withdrawals at $170 million on Monday, marking its second-biggest daily outflow to date. Among other funds, Ark Invest’s ARKB and Bitwise’s BITB posted their worst performances since inception, with outflows of $138 million and $80 million, respectively.

Grayscale’s BTC ETF saw $89 million in withdrawals, while its flagship Grayscale Bitcoin Trust (GBTC) fund lost $64 million. Meanwhile, Franklin Templeton, VanEck, and Valkyrie funds collectively recorded outflows exceeding $38 million.

In contrast to the broader trend, BlackRock’s iShares Bitcoin Trust (IBIT) ETF reported about $38 million in net inflows, while WisdomTree’s BTCW and Invesco’s ProShares Bitcoin Strategy ETF (BTCO) showed no flows.

Spot Bitcoin ETFs snapped their seven-day winning streak last Friday as Bitcoin dropped below $70,000, according to CoinGecko, after trading at levels close to its all-time high earlier in the week.

The largest cryptocurrency extended its decline over the weekend, falling to a low of $67,300. However, it still maintains its gains since the US Federal Reserve made an aggressive 50 basis-point cut on September 18.

Markets brace for volatility ahead of Election Day and the FOMC meeting

All eyes are now on tomorrow’s presidential election and the Fed policy decision scheduled for Wednesday. Crypto markets are bracing for more volatility ahead of these key events.

Analysts are predicting heightened volatility in Bitcoin as the election approaches. This could lead to a “sell-the-news” reaction, considering past instances where markets have reacted strongly to major news and triggered significant price movements.

Bitcoin is currently trading at around $67,800, down 2% in the last 24 hours, according to CoinGecko. The total cryptocurrency market capitalization also dropped almost 3% to $2.3 trillion.