US Spot Bitcoin and Ethereum ETFs Lose $530M Amid $3 Trillion Stock Market Rout

US spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced combined net outflows of approximately $530 million on Thursday, Nov. 5, as a sharp downturn across Wall Street wiped out the gains recorded following the US midterm elections.

According to data from Farside Investors, Bitcoin ETFs registered $430.23 million in withdrawals, while Ethereum investment products saw an additional $99.98 million leave the funds. The latest figures highlight renewed investor caution as falling asset prices and broader market weakness weighed on demand for crypto investment products.

Bitcoin ETFs Extend Withdrawal Streak as Investors Pull $1.51B

The latest redemptions added to an ongoing period of withdrawals that had already begun before Thursday's market sell-off.

BlackRock's iShares Bitcoin Trust (IBIT) recorded $105 million in outflows, marking its fifth consecutive trading session of negative flows. Investors withdrew approximately $1.04 billion from the fund throughout this period, including $405.3 million on Nov. 2.

Across the entire US spot Bitcoin ETF market, cumulative net outflows reached roughly $1.51 billion over the five trading sessions beginning Oct. 30. This happened despite a temporary improvement in investor demand on Wednesday, when the funds briefly returned to positive territory.

Fidelity's FBTC experienced the largest withdrawals on Thursday, with $199.87 million leaving the fund. This reversal came just one day after it attracted $236.7 million, making it the strongest contributor to Wednesday's recovery.

Other Bitcoin investment products also recorded negative flows. Grayscale's GBTC lost $49.9 million, while Franklin Templeton's EZBC and VanEck's HODL registered outflows of $32.92 million and $23.64 million, respectively.

Notably, none of the 12 US spot Bitcoin ETFs recorded positive net flows during Thursday's session. The withdrawals brought their cumulative November outflows to approximately $869.8 million, adding to the selling pressure that had intensified toward the end of October.

Ethereum ETFs Follow Bitcoin With Nearly $100M in Withdrawals

Ethereum investment products experienced a similar downturn, with BlackRock's funds accounting for most of the sector's withdrawals.

The asset manager's flagship iShares Ethereum Trust (ETHA) recorded $75.2 million in net outflows, while its staked Ethereum ETF, ETHB, lost another $22 million. Fidelity's FETH also experienced withdrawals, with investors pulling approximately $2.24 million.

These movements pushed cumulative net outflows from US spot Ethereum ETFs to around $272 million in November, reversing part of the recovery that followed Wednesday's $53 million in inflows.

The latest figures indicate that institutional investment products tracking both leading cryptocurrencies remain exposed to the broader deterioration in market sentiment, despite the temporary improvement observed earlier in the week.

Bitcoin and Ethereum Reverse Post-Election Gains Amid Wall Street Turmoil

Thursday's withdrawals marked a sharp reversal from Wednesday's recovery, when US spot Bitcoin and Ethereum ETFs attracted a combined $127.6 million. Investor sentiment had briefly improved following the resolution of uncertainty surrounding the US midterm elections.

However, the positive momentum quickly faded as traditional financial markets came under renewed pressure.

Bitcoin declined 6.03% over 24 hours to $75,581.52, giving up its recovery above $80,000 after the Democratic Party secured a sweeping congressional victory. Ethereum also retreated, falling to approximately $2,237 at press time after previously trading above $2,400.

The downturn coincided with a significant Wall Street sell-off that US President Donald Trump described as one of the stock market's "worst days in history."

ETF Outflows Highlight the Fragility of Crypto Market Recovery

The reversal in ETF flows suggests that the post-election improvement in investor sentiment was not strong enough to withstand renewed pressure across traditional financial markets. Wednesday's inflows had offered a temporary indication of recovering demand, but Thursday's withdrawals demonstrated how quickly that momentum could disappear.

More importantly, the concentration of withdrawals across major asset managers indicates that the pressure was not limited to individual funds or issuers. Instead, it reflected a broader reduction in exposure to Bitcoin and Ethereum investment products.

The coming trading sessions will be important in determining whether these outflows represent a short-term reaction to market volatility or the beginning of a more sustained withdrawal of institutional capital. A return to consistent positive ETF flows could help support price stabilization, while continued redemptions would signal that investors remain reluctant to increase their exposure to digital assets amid uncertainty in traditional markets.