Crypto ETFs face over $500 million in outflows after midterm elections
Significant outflows from crypto ETFs
U.S. spot crypto exchange-traded funds (ETFs) experienced over $500 million in net outflows on Thursday. This withdrawal came as both crypto and technology markets fell following the U.S. midterm elections.
Key figures from the outflows
- Fidelity’s FBTC bitcoin ETF saw $199.9 million in outflows.
- BlackRock's IBIT followed with $105 million, and Grayscale's GBTC recorded $49.9 million.
- Ethereum ETFs also experienced notable redemptions, with BlackRock's ETHA losing $75.2 million.
- Overall, U.S. crypto ETFs have seen more than $1.1 billion in outflows this week.
Market context
The declines in crypto markets echo a broader selloff affecting technology stocks. Bitcoin fell 5.6% on Thursday, and Ethereum dropped 7.8%. This selloff is linked to investor concerns about the impact of potential AI regulations following the Democrats' successful election.
What is confirmed
It is confirmed that U.S. spot crypto ETFs had over $540 million in withdrawals on Thursday, with multiple funds contributing to these outflows.
What is still unclear
The long-term impact of the midterm election results on the crypto market remains uncertain, as does the potential recovery from these outflows.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.