Record-Setting Week for Bitcoin Funds Ahead of US Elections: ETF Recap

In the week leading up to the highly anticipated US presidential elections, 11 locally-based spot Bitcoin ETFs experienced their most successful week in terms of net weekly flows since March. The price of Bitcoin surged close to an all-time high, although it later lost some momentum.

• The positive trend for Bitcoin ETFs began on October 11, with only two days of net outflows out of 16 since then.
• During the last trading week, these funds attracted over $2 billion, with inflows peaking on several days.

Inflows and Market Activity

On Monday, Bitcoin ETFs saw inflows of $479.4 million, followed by $870.1 million on Tuesday and $893.3 million on Wednesday. However, the momentum slowed on Thursday with $32.3 million and a withdrawal of $54.9 million on Friday.

• The total net inflow for the week reached $2.22 billion, marking the best week since March 11-15.
• BlackRock’s IBIT ETF set a record for inflows, bringing in $872 million on Wednesday, raising its assets under management (AUM) to over $26 billion.

Bitcoin Price Movements

The influx of capital positively impacted Bitcoin's price, which soared to $73,600 on Tuesday. However, the asset subsequently dropped by over $5,000, potentially influenced by changing odds for Donald Trump, a pro-crypto presidential candidate.

Ethereum ETFs Underperform

In contrast, spot Ethereum ETFs have struggled to match the interest and inflows seen by Bitcoin ETFs. Over the past week, ETH ETFs recorded minor inflows, totaling $13 million.

• The inflows included $7.6 million on Tuesday, $4.4 million on Wednesday, and $13 million on Thursday, but they also faced outflows of $1.1 million on Monday and $10.9 million on Friday.
• Ethereum's price fell by 1.8% over the week, hovering around $2,450.

The week leading up to the US elections proved to be a record-setting period for Bitcoin ETFs, showcasing strong investor interest and significant capital inflows. Meanwhile, Ethereum ETFs continue to lag behind, reflecting a stark contrast in market dynamics.