Spot Bitcoin and Ether exchange-traded funds (ETFs) listed in the United States halted their recent outflow momentum on Wednesday, attracting cumulative inflows totaling $127.6 million as cryptocurrency markets rebounded in the wake of US midterm election results.
Shift in ETF Flows
Bitcoin (BTC) ETFs took in $74.6 million, while Ether (ETH) funds added $53 million, according to data from blockchain analytics firm SoSoValue. This movement marked a clear reversal from three consecutive trading sessions that saw Bitcoin ETF withdrawals reach $1.16 billion, and Ether funds experiencing seven straight days of outflows amounting to $657 million.
The shift in investor sentiment coincided with Bitcoin recovering above the $80,000 threshold. US equities also climbed following victories by Democratic candidates in the midterm elections, which appeared to restore some confidence in risk assets.
Recent days had seen a winding down of ETF withdrawals, falling from $399 million on Monday to $116 million on Tuesday, setting the stage for Wednesday’s inflows.
Major ETF Movements and Institutional Trends
Within the market, institutional activity displayed diverging trends. Blackrock’s iShares Bitcoin Trust (IBIT) recorded significant outflows of $201.2 million on Wednesday, extending its four-session withdrawal total to $935.2 million, according to Farside Investors. In contrast, Fidelity’s Wise Origin Bitcoin Fund (FBTC) attracted approximately $237 million in new investments, leading the sector’s inflows for the day.
| ETF Name | Wednesday Flows | Current Streak | Total 2026 Net Outflows |
|---|---|---|---|
| Blackrock IBIT | -$201.2 million | 4 sessions outflow | $935.2 million |
| Fidelity FBTC | +$237 million | Leading inflows | N/A |
| Total Bitcoin ETFs | +$74.6 million | Reversal of 3 sessions outflow | $79 million (2026 net) |
| Total Ether ETFs | +$53 million | End of 7-day outflow | N/A |
Wednesday’s inflows helped offset cumulative outflows, narrowing Bitcoin ETF net outflows for 2026 to about $79 million.
Expert Insight and Market Drivers
James Butterfill, head of research at digital asset manager CoinShares, observed that Bitcoin’s market had already adjusted for the possibility of a Democratic sweep prior to the midterms. As political uncertainty receded, Bitcoin experienced a relief rally. Butterfill, however, advised caution in connecting too much of the cryptocurrency’s movement to the election alone and indicated that more persistent trends may play a greater role.
James Butterfill highlighted that Bitcoin had largely priced in the risk of a Democratic win before the elections, which paved the way for a post-election relief rally as uncertainty faded. He noted that other factors beyond the US midterms may be more significant for future price movements.
CK Zheng, co-founder of crypto hedge fund ZX Squared Capital and previously the global head of risk at Credit Suisse, stressed the importance of monetary liquidity, institutional investment patterns, and overall appetite for risk as crucial influences on Bitcoin’s valuation.
Mini dictionary: ZX Squared Capital is a digital asset hedge fund specializing in investment strategies focused on Bitcoin and other cryptocurrencies, leveraging both institutional and technical expertise.
Zheng pointed to expanding demand drivers for Bitcoin, including the impact of spot ETFs and corporate treasury holdings, but also acknowledged the potential for increased institutional selling pressure.
The latest developments reflect both shifting institutional dynamics and the growing role of exchange-traded funds in the evolving digital asset investment landscape.
