Bitcoin Spot ETFs See Significant Outflows Amid U.S. Election Results, While Spot Market Surges to Record High

In the days leading up to the U.S. presidential election, Bitcoin spot ETFs have recorded substantial outflows, reflecting institutional caution amid a turbulent political landscape. Net outflows reached $116.8 million as investors adopted a risk-averse stance. 

Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the outflows with a $68.2 million decline, while Bitwise’s Bitcoin ETF (BITB) was the only spot ETF to attract inflows, gaining $19.3 million.

BlackRock’s iShares Bitcoin Trust (IBIT) recorded its sixth outflow since launching in January, with a notable $44.2 million net outflow on November 5. This marks the third consecutive day of net outflows for U.S. spot Bitcoin ETFs, likely reflecting uncertainty around the election's impact on the crypto sector's regulatory framework. Just one day prior, on November 4, spot ETFs collectively saw an even larger net outflow of $541.1 million—the second-largest 24-hour outflow on record.

Spot Market Strengthens Despite ETF Outflows

While ETF investors exercised caution, the spot market for Bitcoin showed remarkable resilience and upward momentum, aligning with increased optimism in the crypto community as election results unfolded. Bitcoin’s spot price surged to an unprecedented $75,000, capitalizing on a favorable outlook for digital assets. Bitcoin has become the “global trader’s election play,” with global betting markets anticipating a pro-crypto administration and driving optimism.

Bitcoin may have completed roughly 80% of its bull run, with the potential to climb to $100,000 by year-end following the election. Meanwhile, the elections will influence regulatory expectations—particularly with the SEC’s approach to crypto—sustained ETF innovation hinges on bipartisan regulatory support.

Outlook and Implications

This divergence between ETF outflows and spot market strength suggests that while institutions may be playing it safe, the broader market remains highly optimistic about Bitcoin’s prospects. A sustained spot market rally could signal continued bullish momentum, especially if the election outcome introduces a more crypto-friendly regulatory environment. Bitcoin traders and investors should monitor upcoming policy developments closely.