Crypto ETFs See Heavy Outflows as Bitcoin and Ether Extend Slide
Virtually $1.3 billion has left Bitcoin exchange-traded funds in the last seven days. The spot Bitcoin ETFs saw their worst net outflow since late June in the week of the major Binance breach, which coincided with the US midterm elections. At the same time, their Ethereum counterparts are still seeing losses; in fact, they’ve been negative for six weeks running. The last trading day of October turned around the entire month’s fortunes, as reported last weekend. Following the aforementioned Binance hack, which caused a significant outflow of over $640 million from the Bitcoin ETFs, the funds ended the month with a deficit of $515 million. It was the first time something like this had happened since June, when a $4.51 billion drop occurred in the financial products.
With the real consequences of the breach starting to sink in, investors pulled out an extra $400 million on Monday, November 2nd, and another $115.56 million on Tuesday, the day of the midterm elections. On Wednesday, the bulls came back into the market, pouring $74.57 million into the funds and helping to propel the underlying asset to a massive jump to $81,000. Nonetheless, both the upswing and the net inflows were transitory. A further $430 million and $412 million were withdrew by investors on Thursday and Friday, respectively, after they changed their minds. The price of bitcoin fell sharply in reaction to these outflows, as expected, hitting a seven-week low of less than $75,000 on Friday.
Net outflows reached $1.28 billion by the end of the week, the largest sum since the last full week of June, when they were close to $1.8 billion. October was a rough month for the top altcoin, with double-digit losses mostly caused by money leaving exchange-traded funds. Last weekend, news broke that $1.61 billion left the funds in October, a record high. On the whole, just three days out of the entire month produced positive results, with each day posting less than $25 million. Ethereum exchange-traded funds’ declining trend has persisted.
Every trading day after November 4 saw a net outflow of more than $53 million, with the exception of Wednesday, when inflows were $53 million. On Monday, $139.80 million was spent, on Tuesday, $85.35 million, on Thursday, $100 million, and an extra $93.19 million on Friday. For the sixth week in a row, the week ended in the red, with net outflows of just over $365 million. The total net inflows as of November 6 were $11.92 billion, down from $13.94 billion at the end of September. Meanwhile, the price of ETH has dropped to below $2,250, a 10% monthly drop.
