Bitcoin spot ETFs experienced their first outflow in over a week on November 1, with $54.94 million exiting funds just days before the U.S. presidential election. The outflow, which snapped a seven-day inflow streak, reflects growing hesitation among institutional investors as political uncertainty grips the market.
Ethereum spot ETFs followed suit, recording $10.93 million in net outflows on the same day, according to SoSoValue data. The dual outflows underscore a broader risk-off sentiment that has settled over digital asset markets heading into election week.
TL;DR
- Bitcoin spot ETFs saw $54.94M net outflow on Nov 1 — first outflow after seven consecutive days of inflows
- Ethereum spot ETFs lost $10.93M; cumulative ETH ETF net inflow dropped to -$491.44M
- BlackRock IBIT saw zero new inflows; FBTC led outflows at $25.64M
- Radiant Capital resumed lending on Ethereum and Base after $58M exploit
- BTC market dominance hit 60.5%, a three-year high
ETF Inflows Hit a Wall
The timing of the outflows is telling. With the U.S. election just three days away, institutional capital appears to be rotating out of crypto exposure rather than doubling down. BlackRock’s IBIT, which has accumulated over $26.14 billion in total inflows since launch, recorded zero new investments on November 1. Fidelity’s FBTC led the exodus with $25.64 million in outflows, followed by ARK 21Shares’ ARKB at $24.13 million.
Not every fund participated in the retreat. Grayscale’s Bitcoin Mini Trust actually attracted $13.51 million in inflows, bringing its cumulative total to over $502 million. But the overall trend was unmistakably negative: Bitcoin ETFs collectively shed $54.94 million in a single session.
The picture was equally grim for Ethereum products. Grayscale’s ETHE suffered $11.43 million in outflows, while only Bitwise’s QETH managed a modest $502,000 inflow. The remaining ETH ETFs — including those from VanEck, Franklin Templeton, and Invesco — saw zero activity. Cumulative Ethereum ETF flows now sit at negative $491.44 million, a stark reminder that ETH products have struggled to gain traction since their summer launch.
Bitcoin Dominance Reaches Three-Year Peak
While capital flowed out of ETFs, Bitcoin’s share of the total crypto market reached 60.5% — the highest level in nearly three years. The metric highlights a flight to quality within digital assets, as investors consolidate around BTC at the expense of altcoins and DeFi tokens.
Bitcoin traded in a tight range between $67,482 and $69,338 over the November 2 weekend, holding near $69,000 but failing to reclaim the $70,000 psychological barrier. Ethereum mirrored the cautious tone, oscillating between $2,410 and $2,491 as it tested support levels.
The Deribit options market offered an interesting signal: call options showed nearly twice the open interest of puts for contracts expiring around election day, suggesting that while spot investors are cautious, derivatives traders remain tilted toward bullish outcomes.
Radiant Capital Bounces Back
In the DeFi sector, lending protocol Radiant Capital took a significant step toward recovery. After suffering a devastating $58 million exploit in October — one of the largest DeFi hacks of 2024 — the protocol successfully restored its lending markets on both Ethereum and Base networks.
The recovery process involved implementing enhanced security measures, including a new time-lock mechanism and transferring emergency administrative functions to a multi-signature wallet. The Base network resumed operations on November 3, following the Ethereum market restoration earlier in the week.
Radiant Capital’s rebound is a testament to DeFi resilience, but it also serves as a reminder of the sector’s persistent security challenges. Just days after Radiant’s recovery, the Coin31 token on BSC was exploited for approximately $26,000 through an unprotected smart contract function. The attacker manipulated the uninitialized setMaster function to drain the token pool — a basic vulnerability that should have been caught in auditing.
Traditional Markets Offer Mixed Signals
The crypto market’s caution stood in contrast to traditional equities, where U.S. indices posted gains on Friday. The S&P 500 rose 0.41%, the Nasdaq climbed 0.80%, and the Dow Jones added 0.69%. Spot gold also advanced, reaching $2,742 per ounce with a 0.25% daily gain.
The divergence suggests that crypto-specific factors — primarily election uncertainty and ETF fatigue — are weighing on digital assets independently of broader market sentiment. With the Fear and Greed Index sitting at a neutral 49, the market appears to be in a holding pattern, waiting for the election results before committing to a directional move.
Why This Matters
The convergence of ETF outflows, rising Bitcoin dominance, and pre-election uncertainty paints a picture of a market at an inflection point. The $54.94 million Bitcoin ETF outflow may seem modest compared to the $24.15 billion in cumulative inflows, but breaking a seven-day streak signals a shift in institutional conviction. For DeFi, Radiant Capital’s recovery shows that protocols can bounce back from catastrophic exploits, but the Coin31 incident proves that basic security failures remain endemic. As election results loom, both institutional and DeFi markets are positioning for a potential volatility spike that could reshape the landscape.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
etf outflows before the election showed institutions were hedging their bets