U.S. spot cryptocurrency exchange-traded funds registered over half a billion dollars in net withdrawals on Thursday as digital asset markets reversed earlier advances following the outcome of the U.S. midterm elections.
Among bitcoin ETFs, Fidelity’s FBTC topped Thursday’s net outflows at $199.9 million, succeeded by BlackRock’s IBIT at $105 million and Grayscale’s GBTC at $49.9 million, based on metrics gathered by The Block. Franklin Templeton’s EZBC, VanEck’s HODL, and Ark Invest’s ARKB also experienced net withdrawals, while the remaining funds recorded zero flows for the session.
Spot Bitcoin ETF flows. Image: The Block.
Ethereum products similarly encountered substantial net outflows, spearheaded by BlackRock’s ETHA and ETHB, which registered $75.2 billion and $22 billion in redemptions, respectively. Fidelity’s FETH and Grayscale’s ETHE likewise faced withdrawals.
Spot Ethereum ETF flows. Image: The Block.
Other prominent crypto ETFs performed similarly when factoring in scale. The U.S. Solana ETF recorded an aggregate $1.2 million in daily net outflows, Zcash funds saw $11 million, and Hyperliquid funds noted $3 million, according to SoSoValue data. XRP ETFs stood apart as the sole exception, displaying flat flows for the day.
Leading U.S. crypto ETFs have now accumulated a combined net withdrawal exceeding $1.1 billion throughout the week.
Crypto declines amid broader market selloff post-midterms
Bitcoin Bitcoin (BTC) retreated 5.6% on Thursday, more than wiping out an initial 4% jump on Wednesday that followed the U.S. midterm elections on Tuesday. Ether Ethereum (ETH) suffered a deeper blow, tumbling 7.8% on the day, while the GMCI 30 index, tracking a basket of the top 30 digital assets, slid 6.4%.
GMCI 30 index. Image: The Block.
Technology equities also took losses, with the Nasdaq Composite dropping 5.5% and the S&P 500 declining 4.4% as market participants continued evaluating the implications of potential restrictions on artificial intelligence infrastructure expansion following the Democratic party’s takeover of both the House and Senate.
Kyle Rodda, a senior financial markets analyst at Capital.com, noted that the Democratic majority intensified anxieties surrounding the artificial intelligence investment boom, coming at a time when traders were already questioning tech valuations and the velocity of infrastructure expenditures.
“The regulatory and political hazards emerge as the well-known AI trade was already standing on shakier ground,” Rodda remarked, drawing attention to disappointing financial results and indications of decelerating AI funding.
Axel Rudolph, chief technical strategist at IG, told The Block that bitcoin has been “pulled into the AI-driven selloff as investors rapidly shed risk across technology and digital asset sectors.”
Rudolph explained that bitcoin’s historical correlation with technology equities made it vulnerable to the downturn, resulting in over $1 billion in leveraged crypto positions being liquidated within a 24-hour window as the market descent persisted.
BTC Pearson Correlation (30D). Image: The Block.
US jobs report and Fed outlook
The upcoming U.S. employment figures on Friday could introduce further complexity for financial markets, particularly if the data provides the Federal Reserve with additional justification to increase interest rates.
Forecasters anticipate roughly 60,000 to 65,000 new positions created, according to Daniela Hathorn, senior markets analyst at Capital.com. She cautioned that a robust employment report, specifically one reflecting accelerated wage gains, might drive both Treasury yields and the U.S. dollar higher.
Despite prevailing market softness, André Dragosch, head of European research at Bitwise, anticipates that bitcoin will outpace traditional U.S. shares as the AI trade unwinds.
Dragosch suggested that bitcoin displays heightened sensitivity to currency fluctuations and central bank policy projections rather than broad economic output, potentially allowing it to decouple from equities should financial conditions strengthen.
Originally published at https://www.theblock.co/news/markets/2026-11-06-crypto-etfs-see-over-half-a-billion-dollars-in-outflows-amid-post-midterm-market-slide-435873.
