Bitcoin and Ethereum ETFs lose half a billion dollars: analyst remains hopeful
Bitcoin and Ethereum exchange funds lose $530 million after sharp price declines. Analysts may expect a quick recovery.
The US crypto market is under pressure again. After a brief recovery in the aftermath of the midterm elections, the prices of Bitcoin (BTC) and Ethereum (ETH) have fallen sharply again. Investors in US stock market funds are also withdrawing.
According to analysts, the unrest may continue for a while, although an important bottom could be close by.
US Bitcoin and Ethereum exchange funds together saw about $530 million in capital leave yesterday.
The Bitcoin ETFs accounted for most of the outflow by about $430 million. Ethereum was another $100 million.
The day before, the picture was very different. On Wednesday, $128 million flowed into both funds after the Democrats won the US midterm elections.
However, the relief in the financial markets turned out to be short-lived. The Bitcoin price rose above $80,000 on Wednesday, but fell below $76,000 again yesterday.
Investors also suffered significant losses on Wall Street. The Nasdaq technology exchange fell by 5.5 percent, the largest daily decline since April 2025.
Investors withdrew a lot of money yesterday, especially from asset manager Fidelity. The Wise Origin Bitcoin Fund (FBTC) lost about $200 million after another $237 million came in on Wednesday.
BlackRock also had to deal with outflow again. About $105 million disappeared from the iShares Bitcoin Trust (IBIT) yesterday.
As a result, the fund lost capital for the fifth trading day in a row. Since October 30, investors have withdrawn more than $1 billion from the fund.
Despite the ongoing sales pressure, crypto analyst Michaël van de Poppe sees opportunities for recovery.
He expects both the Nasdaq and Bitcoin to potentially bottom out today. In addition, he does not rule out the possibility that the Bitcoin price will first fall below $75,000.
Dean Lyulkin, CEO of Cardiff and founder of the financial newsletter The Dean's List, also sees no immediate reason to compare the current situation with the financial crisis of 2008.
According to him, households and banks are now financially stronger. However, he warns against risks around commercial real estate, private credit and the huge investments in artificial intelligence.