After the U.S. presidential elections on November 5, 2023, the crypto market showed significant activity. Following Donald Trump's reelection, substantial flows into Bitcoin and Ethereum ETFs were recorded.
Impact of Presidency on Crypto Circuit
The elections of President Donald Trump had a positive impact on the cryptocurrency market. However, despite the initial surge, subsequent statements by Fed Chairman Jerome Powell about not rushing to lower interest rates led to a decline in Bitcoin. According to Farside Investors, on November 14, spot Bitcoin ETFs experienced a total net outflow of $401 million.
Bitcoin ETF Dynamics
Bitcoins ETFs recorded net outflows for the first time in 10 days. Among the funds, BlackRock’s iShares Bitcoin Trust ETF marked net inflows of $126.5 million and VanEck Bitcoin ETF saw an inflow of $2.5 million. Fidelity ETF FBTC suffered the most net outflow of $179.2 million. ARK and 21Shares joint ETFs followed with $161.7 million in outflows, and Bitwise’s BITB ETF with $113.9 million.
State of Ethereum ETFs
Ethereum ETFs also saw their first net outflow since the elections, totaling $3.2 million. Among the group, BlackRock iShares Ethereum Trust ETF saw an inflow of $18.9 million, while Invesco’s QETH fund recorded an inflow of $900,000. Significant outflows were seen from the Grayscale Ethereum Trust ETF at $21.9 million.
While Trump’s elections initiated a boost in the crypto market, the economy remains volatile, influenced by external factors such as Fed policies.
