- BlackRock’s IBIT ETF sees zero inflows Friday, marking its first monthly pause amid election-driven investor caution.
- Total U.S. Bitcoin ETF outflows hit $54.9M Friday, as political uncertainty impacts crypto investment sentiment
- Trump’s election odds slip by 4.5 points; Bitcoin falls below $70K as investors adopt a wait-and-see approach.
The BlackRock Bitcoin ETF (IBIT), a major player in Bitcoin-focused exchange-traded funds, saw a halt in inflows on Friday as investor caution grew ahead of the U.S. presidential election. This marks the first time in nearly a month that the IBIT ETF recorded zero inflows, signaling a potential pause in demand.
Across all U.S. spot Bitcoin ETFs, total outflows reached $54.9 million, suggesting that shifting election odds may affect the market. The timing of these outflows, just days before the election, points to a more cautious approach by investors.
Spot Bitcoin ETFs Report Rare Outflows
The pause in Bitcoin ETF inflows comes after a period of consistent gains. BlackRock’s IBIT alone saw around $2.2 billion in inflows earlier in the week, leading the pack among Bitcoin ETFs. Other major ETFs, such as those managed by Fidelity and ARK, reported significant outflows on Friday.
According to Farside Investors data, Fidelity saw $25.6 million in outflows, while ARK registered $24.1 million. These withdrawals follow a record-breaking October, during which spot Bitcoin ETFs collectively increased their Bitcoin holdings to over 5% of the total BTC supply, surpassing 1 million Bitcoin. BlackRock’s IBIT alone holds about 2% of the total supply, illustrating its dominant role in the market.
Political Shifts Affecting Crypto Market Dynamics
The shift in Bitcoin ETF inflows aligns with changing U.S. election dynamics. According to Polymarket data, Donald Trump’s predicted odds of victory fell by 4.5 percentage points on Friday, placing his chances at 58.1%, while Kamala Harris’s odds rose to 41.9%. Harris has gained ground in critical swing states, adding uncertainty to the race.
This shift influences investor sentiment, as some participants hold back until election results provide clearer market guidance. These developments saw Bitcoin’s price fall below $70,000 after it hit $73,000 earlier this week. Market watchers said analysis of Bitcoin’s performance in the coming days may be impacted by election-related news.
The broader cryptocurrency market is also slowing down. Meanwhile, Ethereum, the second largest cryptocurrency by market cap, dipped to $2,500 as buying interest waned. According to analysts, restoring upward momentum in Bitcoin and other major digital assets will depend on the flow of ETF inflows. Stablecoins alone may need more buy-side liquidity, as the current BTC-to-stablecoin ratio is similar to previous peaks.
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