As the US presidential election approaches, crypto investors are preparing for a period of heightened market volatility. According to data compiled by Bloomberg, US exchange-traded funds (ETFs) investing in Bitcoin recorded their highest daily net outflow to date, shedding $579.5 million on Monday.
The group of 12 funds, managed by the likes of BlackRock Inc. and Fidelity Investments, saw the significant outflows as digital-asset traders brace for potential market upheavals in the aftermath of the election.
The contest between Republican nominee Donald Trump and Democratic rival Kamala Harris appears to be a close one, leaving investors across asset classes planning for potential market disruptions. During the campaign, Trump took a pro-crypto stance, while Harris pledged to back a regulatory framework for digital assets.
“The biggest changes for mid-longer term crypto policy and direction won’t be seen until after the week has passed and seats around the president are filled or maintained,” said Paul Howard, senior director at crypto market maker Wincent.
Despite the market jitters, Bitcoin rose 2.3% to $68,621 as of 6:36 a.m. Tuesday in London. The digital asset reached an all-time high of $73,798 in March, aided by inflows into the US ETFs. Bitcoin has rallied more than 60% so far in 2024, outperforming assets like stocks and gold.
