Bitcoin ETF Inflow Hits Record High, But Why Is BlackRock ETF Struggling?

In October, Bitcoin saw a remarkable 14% rise, driven by optimism around Donald Trump’s potential return to office as a pro-crypto leader. However, this excitement took a hit on November 1, as Bitcoin spot ETFs experienced unexpected outflows totaling $54.9 million, breaking a streak of steady inflows. Notably, BlackRock’s popular iShares Bitcoin Trust ETF (IBIT) recorded no new inflows for the first time in a month.

Are investors starting to pull back just days before Election Day? Here’s what to expect.

Blackrock ETF Inflows Hit Zero

On October 31, Bitcoin exchange-traded funds (ETFs) in the U.S. reached a significant milestone, with record inflows of $893 million. Leading this surge, BlackRock’s IBIT brought in an impressive $875 million in just one day, pushing its total contributions close to $2.2 billion.

Political Shifts Impact Market Sentiment

Just three days before the election results, the momentum shifted sharply. Total U.S. Bitcoin ETF inflows took a hit, resulting in $54.9 million in outflows, according to Farside. Fidelity led the way with $25.6 million in outflows, followed by ARK with $24.1 million, as reported by Farside Investors. Meanwhile, BlackRock’s Bitcoin ETF saw no inflows for the first time in several trading sessions.

These outflows occur as digital assets face growing economic pressures and regulatory uncertainties, adding to investors’ concerns in an already volatile market.

Bitcoin Price Analysis

Despite these challenges, Bitcoin (BTC) has shown resilience, recently rebounding to around $73,300. On-chain data reveals that Bitcoin has formed a “golden cross,” a bullish signal indicating that better days may be ahead.

A golden cross occurs when the 30-day moving average crosses above the 365-day moving average, often suggesting a potential continuation of a bullish trend. Currently, Bitcoin’s price stands at $69,591.07, reflecting a slight dip of 0.93% in the last 24 hours.

As the U.S. elections approach, short-term implied volatility has surged to levels not seen in months, outpacing longer-term expectations and leading to a significant inversion in the market dynamics.

Do you believe that BlackRock’s ETF can regain its momentum, or is the market shifting? Tell us what you think.