Key Points
- Bitcoin and Ethereum ETFs experienced outflows for the first time after Trump’s victory.
- Despite this, analysts predict potential price surges for both cryptocurrencies.
After the victory of Donald Trump as the 47th U.S President, the cryptocurrency market experienced a significant surge.
Bitcoin surpassed its previous all-time highs, with altcoins also following suit. This bullish momentum was accompanied by a wave of investments into Bitcoin and Ethereum exchange-traded funds (ETFs), indicating growing investor confidence.
Bitcoin and Ethereum ETF Update
Between November 5th and 13th, Ethereum ETFs witnessed substantial inflows of $796.2 million. Bitcoin ETFs had even higher inflows of $4.73 billion between November 6th and 13th, showcasing an increasing interest in digital assets.
However, on November 14th, data revealed that Bitcoin ETFs experienced a net outflow of $400.7 million across eleven funds. This coincided with a 2% drop in Bitcoin’s price, which stood at $89,164.
Similarly, Ethereum ETFs faced outflows totaling $3.2 million, as Ethereum’s price fell by 2.89%, and was trading at $3,099, at press time.
This decrease in both Bitcoin and Ethereum prices mirrored the outflow in ETF investments, indicating a brief shift in market sentiment.
Among Bitcoin ETFs, only BlackRock’s IBIT and VanEck’s HODL experienced positive inflows, attracting $126.5 million and $2.5 million, respectively. Other Bitcoin ETFs, including Fidelity’s FBTC and Ark’s 21Shares ARKB, saw significant outflows of $179.2 million and $161.7 million.
On the Ethereum ETF side, BlackRock’s ETHA recorded inflows of $18.9 million, and Invesco’s QETH saw modest inflows of $0.9 million. However, most Ethereum ETFs experienced zero movement, with Grayscale’s ETHE suffering the largest outflows at $21.9 million.
Optimism Surrounds ETFs
Despite the recent downturn, the cryptocurrency community remained optimistic, with no negative feedback regarding either Bitcoin or Ethereum ETFs.
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.
Additionally, 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.
He stated that the ETH ETF is a “Recipe for an ETH rocket to $10k.”
