Key Points
- Bitcoin and Ethereum ETFs experienced outflows for the first time since Trump’s election victory.
- Despite recent outflows, analysts anticipate potential price surges for Ethereum and Bitcoin ETFs.
ETFs Post Trump’s Victory
The cryptocurrency market experienced a significant surge following Donald Trump’s election as the 47th President of the United States. This resulted in Bitcoin surpassing its previous all-time highs, with altcoins following suit. This bullish momentum was accompanied by a wave of investments into spot Bitcoin and Ethereum exchange-traded funds (ETFs), reflecting growing investor confidence.
Bitcoin and Ethereum ETF Update
From November 5th to 13th, Ethereum ETFs saw inflows of $796.2 million. Bitcoin ETFs had even higher inflows of $4.73 billion between November 6th and 13th. However, on November 14th, Bitcoin ETFs experienced a net outflow of $400.7 million across eleven funds, coinciding with a 2% drop in Bitcoin’s price. Similarly, Ethereum ETFs faced outflows totaling $3.2 million, as Ethereum’s price fell by 2.89%.
Among Bitcoin ETFs, only BlackRock’s IBIT and VanEck’s HODL saw positive inflows. Meanwhile, other Bitcoin ETFs, including Fidelity’s FBTC and Ark’s 21Shares ARKB, experienced significant outflows. On the Ethereum ETF side, BlackRock’s ETHA recorded inflows, while most Ethereum ETFs experienced zero movement, with Grayscale’s ETHE suffering the largest outflows.
Optimism Surrounds ETFs
Despite the recent downturn, the cryptocurrency community remains optimistic. Discussions have emerged around Bitcoin ETFs potentially surpassing the holdings of Bitcoin’s creator, Satoshi Nakamoto. According to analysts Shaun Edmondson and Bloomberg’s Eric Balchunas, U.S. spot Bitcoin ETFs have accumulated approximately 1.04 million BTC, nearing Satoshi’s estimated holdings of 1.1 million BTC.
Furthermore, co-founder of Bankless, Ryan Sean Adams noted that while Ethereum ETFs had experienced significant outflows, this dynamic might change as inflows start to turn positive. Adams believes this shift could be a major catalyst, predicting it could pave the way for Ethereum’s price to soar, potentially reaching $10,000.
