The End Of The Trump Rally? Crypto ETFs Are Experiencing Massive Outflows

The American crypto ETFs have experienced their first capital outflow since Donald Trump’s electoral victory, marking a pause in the bullish trend. Both Bitcoin and Ethereum recorded significant declines, with respective net outflows of $400.7 million for Bitcoin ETFs and $3.2 million for Ethereum ETFs.

A first capital outflow that marks the end of a historic series

November 14 marked a turning point for crypto ETFs, with a massive outflow of $400.7 million from Bitcoin funds. This decline comes as Bitcoin was trading around $88,200, down 2% over 24 hours.

BlackRock stands out with its iShares Bitcoin Trust ETF, which maintained positive inflows of $126.5 million, while VanEck recorded a modest influx of $2.5 million.

Fidelity’s ETF recorded the most significant losses with -$179.2 million, while the ARK/21Shares ETF and the Bitwise fund saw respective withdrawals of $161.7 million and $113.9 million. Grayscale also suffered the backlash with combined outflows of $74.9 million across its ETFs.

This correction comes after an impressive rally that had propelled Bitcoin from $68,000 to $93,500, a rise of almost 30% since the election of Trump.

The Trump effect fades on the crypto market

The last significant outflow from the ETFs occurred on election day, with $116.8 million in withdrawals amid electoral uncertainty. Trump’s victory then triggered a massive “Trump trade,” fueled by his economic promises and open support for cryptos.

Bitcoin ETFs then set a historic record on November 7 with $1.37 billion in inflows in a single day, part of a series of inflows totaling $4.7 billion over six days.

On the Ethereum side, the trend is similar with a first net outflow since the Trump election. ETH dropped nearly 5% to settle below $3,100, ending a period of continuous inflows of nearly $800 million since November 4.

This technical correction suggests a pause in post-electoral euphoria but does not necessarily undermine the bullish underlying trend of the crypto market, driven by solid fundamentals and a renewed institutional interest.