US spot Bitcoin and Ethereum ETFs registered combined withdrawals of $530 million on Thursday, reversing a brief recovery on Wednesday. Farside Investors data put Bitcoin ETF withdrawals on November 5 at $430.23 million. Farside Investors data showed another $99.98 million leaving Ethereum ETFs. The withdrawals continued a retreat that started before Thursday's market turmoil.
BlackRock's iShares Bitcoin Trust (IBIT) lost $105 million, extending withdrawals to a fifth consecutive trading session. Investors withdrew approximately $1.04 billion from IBIT during those sessions. IBIT's withdrawals included $405.3 million on November 2 alone. US spot Bitcoin ETFs collectively recorded approximately $1.51 billion in net withdrawals across the five sessions beginning October 30, despite positive flows on Wednesday.
Fidelity's FBTC had Thursday's largest withdrawals, at $199.87 million. FBTC had attracted $236.7 million the previous day, leading the brief industry recovery. Grayscale's GBTC lost another $49.9 million. Franklin Templeton's EZBC recorded withdrawals of $32.92 million. VanEck's HODL registered outflows of $23.64 million. None of the 12 Bitcoin funds attracted positive net flows on Thursday. Bitcoin ETFs' November net withdrawals reached $869.8 million, adding to substantial redemptions in late October.
BlackRock funds accounted for nearly all of Thursday's Ethereum ETF withdrawals. BlackRock's flagship ETHA recorded outflows of $75.2 million. BlackRock's staked Ethereum ETF, ETHB, lost another $22 million. Fidelity's FETH registered withdrawals of $2.24 million. Ethereum ETFs' November net withdrawals rose to approximately $272 million, despite inflows of $53 million on Wednesday.
The two ETF categories had attracted a combined $127.6 million on Wednesday as investors welcomed the resolution of uncertainty surrounding the US midterm elections. Bitcoin subsequently dropped 6.03% over 24 hours to $75,581.52. The decline erased Bitcoin's recovery above $80,000 following the Democratic Party's sweeping congressional victory. Ethereum fell to $2,237 at publication time after exceeding $2,400 during the recovery. Whether institutional demand can recover remains an open question as Bitcoin trades below $76,000.
The cryptocurrency reversal coincided with a sharp Wall Street decline. President Donald Trump called the session one of the stock market's "worst days in history." The Kobeissi Letter said the Nasdaq 100 recorded the largest daily decline since the 2020 pandemic. The Kobeissi Letter said the S&P 500 lost $3 trillion in market value amid concerns that Democratic control of Congress could restrict artificial intelligence infrastructure development. The concurrent equity and cryptocurrency declines showed a rapid shift from post-election relief to renewed reluctance to take investment risks.