US crypto ETFs saw their first outflow since Donald Trump's election victory, marking a pause in the uptrend. Both Bitcoin and Ethereum saw significant declines, with respective net outflows of $400.7 million for Bitcoin ETFs and $3.2 million for Ethereum ETFs.
A first outflow of capital which marks the end of a historic series
November 14 marked a turning point for crypto ETFs, with a massive $400.7 million outflow from Bitcoin funds. This drop comes as Bitcoin was trading around $88,200, down 2% over 24 hours.
BlackRock was an exception with its iShares Bitcoin Trust ETF, which maintained positive inflows of $126.5 million, while VanEck saw a modest inflow of $2.5 million.
The Fidelity ETF recorded the largest losses at -$179.2 million, while the ARK/21Shares ETF and the Bitwise fund suffered withdrawals of $161.7 and $113.9 million, respectively. Grayscale is also feeling the pinch with combined outflows of $74.9 million from its ETFs.
This correction comes after an impressive rally that propelled Bitcoin from $68,000 to $93,500, an increase of nearly 30% since Trump's election.
The Trump effect is fading on the crypto market
The last significant ETF outflow was on Election Day, with $116.8 million in withdrawals amid election uncertainty. Trump's victory then triggered a massive “Trump trade”, driven by his economic promises and his displayed support for cryptos.
Bitcoin ETFs then set an all-time record on November 7 with $1.37 billion in inflows in a single day, part of a series of inflows totaling $4.7 billion over six days.
On the Ethereum side, the trend is similar with a first net outflow since the Trump election. ETH fell almost 5% to settle below $3,100, ending a period of continuous inflows of almost $800 million since November 4.
This technical correction suggests a pause in the post-election euphoria, but does not necessarily call into question the underlying upward trend of the crypto market, driven by solid fundamentals and a renewed institutional interest.
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