Crypto ETFs See $128M Influx as Digital Assets Rally Post-Midterm Elections
Bitcoin ETF inflows were spearheaded by Fidelity, as BlackRock's IBIT experienced an additional $201 million withdrawal, marking its fourth consecutive session of outflows.
Exchange-traded funds (ETFs) tracking spot Bitcoin and Ether that are listed in the United States broke their negative flow patterns on Wednesday as digital currency markets experienced a resurgence in the wake of the US midterm elections.
According to data from SoSoValue, Bitcoin (BTC) ETFs saw inflows of $74.6 million on Wednesday, with Ether (ETH) funds capturing an additional $53 million.
This reversal brought an end to a three-day streak of Bitcoin ETF withdrawals that totaled $1.16 billion, while Ether ETFs concluded a seven-session outflow period that amounted to $657 million.
Following the Democratic party's midterm election success on Wednesday, Bitcoin climbed back above the $80,000 threshold and equity markets in the United States posted gains.
Bitcoin ETFs recover, but IBIT outflows continue
The most recent wave of inflows came after a deceleration in withdrawals, which decreased from $399 million on Monday to $116 million on Tuesday.
Data from Farside Investors shows that Blackrock's iShares Bitcoin Trust (IBIT) experienced an additional $201.2 million in withdrawals on Wednesday, pushing its four-session outflow total to $935.2 million. In contrast, Fidelity's Wise Origin Bitcoin Fund (FBTC) topped all other funds with approximately $237 million in new investment.
The Wednesday inflows reduced Bitcoin's year-to-date net outflows for 2026 to approximately $79 million.
Analysts weigh election impact on Bitcoin
According to James Butterfill, head of research at CoinShares, a digital asset management firm, Bitcoin had already factored in the likelihood of Democrats winning control before the election took place, creating an opportunity for a relief rally as market uncertainty diminished. He warned against overemphasizing the role of the election results in Bitcoin's recent price action.
CK Zheng, co-founder of cryptocurrency hedge fund ZX Squared Capital and former global head of risk at Credit Suisse, identified monetary liquidity, flows from institutional investors, and the overall risk appetite among investors as more direct factors influencing Bitcoin's price movements.
According to Zheng, spot Bitcoin ETFs combined with corporate treasury acquisitions have the potential to expand demand, while simultaneously creating vulnerability to selling pressure from institutional investors holding BTC.