U.S. spot crypto exchange-traded funds experienced over half a billion dollars in net outflows on Thursday, reversing earlier gains following the U.S. midterm election results. Among bitcoin ETFs, Fidelity's FBTC led with $199.9 million in outflows, followed by BlackRock's IBIT at $105 million and Grayscale's GBTC at $49.9 million. Other bitcoin ETFs like Franklin Templeton's EZBC, VanEck's HODL, and Ark Invest's ARKB also saw net outflows, while the rest reported zero flows.
Ethereum funds faced significant outflows as well, with BlackRock's ETHA and ETHB seeing $75.2 billion and $22 billion in redemptions, respectively. Fidelity's FETH and Grayscale's ETHE also reported outflows. Smaller crypto ETFs, including those for Solana, Zcash, and Hyperliquid, saw net outflows, while XRP ETFs remained unchanged. Major U.S. crypto ETFs have now seen over $1.1 billion in net outflows this week.
The broader crypto market slid amid a tech stock selloff post-midterms. Bitcoin fell 5.6%, erasing an earlier 4% gain, while Ether dropped 7.8%. The GMCI 30 index, representing top cryptocurrencies, declined 6.4%. Tech stocks also suffered, with the Nasdaq Composite down 5.5% and the S&P 500 dropping 4.4%. Analysts attributed the selloff to concerns over AI infrastructure regulations and slowing spending.
Kyle Rodda of Capital.com noted that the Democratic sweep heightened regulatory risks for AI investments. Axel Rudolph of IG stated that bitcoin's correlation with tech stocks exposed it to the selloff, with over $1 billion in leveraged crypto positions liquidated in 24 hours. The upcoming U.S. jobs report could further impact markets, particularly if it influences Federal Reserve rate decisions.