U.S. spot ETF outflows reached nearly $538 million across Bitcoin and Ether funds on November 2, with BlackRock's products leading the exits. Bitcoin ETFs lost $398.6 million and Ethereum funds shed $139.7 million, according to Farside Investors' Bitcoin ETF flow update.

The combined print drew attention because spot ETF flow tallies are compiled from issuers' daily disclosures, making them one of the most direct public gauges of institutional demand for the two largest cryptocurrencies.

BlackRock's IBIT led the Bitcoin withdrawals with $405.3 million in redemptions, while its Ether fund ETHA lost $138.3 million. Only a handful of products took in cash: Fidelity's FBTC added $6.7 million, and Morgan Stanley's MSSE added $3.2 million. The print points to caution as the U.S. midterm elections approach.

Bitcoin Funds Lose Nearly $399M as IBIT Drives the Exits

IBIT's single-day exit of $405.3 million exceeded the Bitcoin category's net total of $398.6 million. The gap exists because Fidelity's FBTC added $6.7 million, while every other spot Bitcoin fund reported zero flow.

IBIT debuted in January 2024 with the first wave of U.S. spot Bitcoin ETFs and has since grown into the category's largest fund by assets, which is why its daily flows are frequently cited as a barometer of larger institutional positioning.

Ether funds followed a similar pattern. ETHA lost $138.3 million and ETHB shed $4.6 million, producing a net Ether outflow of $139.7 million, per Farside's Ether ETF flow update. Morgan Stanley's Ethereum Trust (MSSE), launched in July 2026, took in roughly $3.2 million — the largest inflow among Ether funds.

The redemptions reflect clients selling ETF shares rather than BlackRock offloading its own holdings. When investors sell ETF shares, the issuer must release a corresponding amount of coins to settle the trade.

The selling was highly concentrated. ETHA alone accounted for roughly 99% of the net Ether outflow, and IBIT's loss exceeded the entire Bitcoin category's net figure — evidence that the exits centered on BlackRock's products rather than spreading across the industry.

Ethereum Funds Shed Nearly $140M, With ETHA Dominating

U.S. spot Ethereum ETFs posted $139.7 million in net outflows, of which ETHA accounted for $138.3 million — nearly the entire category's daily withdrawal total. Spot Ether ETFs began trading in the U.S. in July 2024, extending the same exchange-traded structure to the second-largest cryptocurrency.

Fidelity's FETH and several other Ethereum products recorded no net flows. MSSE pulled in about $3.2 million, the biggest inflow among listed funds, while ETHB moved in the opposite direction, shedding $4.6 million.

The heavy withdrawals across both Bitcoin and Ether products were concentrated in BlackRock's largest funds, and buying from other providers stayed limited. The pattern also tracks recent Bitcoin ETF outflows in prior sessions.

Analyst Crypto Patel separately reported outflows from other U.S. crypto investment products, with his figures including $2.86 million from HYPE ETFs and $3.63 million from ZEC ETFs. Smaller withdrawals hit XRP and AVAX products.

Midterm Uncertainty Weighs on Institutional ETF Demand

The latest withdrawals land as investors weigh several market risks, chief among them the upcoming U.S. midterm elections.

Market analyst Quinten argued that investors have already priced in a potential Democratic victory in both chambers of Congress, citing prediction-market odds of 95% for a Democratic House win and 76% for a Senate win. Quinten also pointed to historical stock performance after U.S. midterms: by his analysis, the S&P 500 posted positive returns over the following 12 months in all 21 midterm cycles since 1942, with an average gain of 16.6%.

With Bitcoin and Ethereum ETF outflows piling up in BlackRock's funds and rival inflows not yet large enough to offset them, the coming sessions should show whether investors are playing it safe ahead of the midterms or whether institutional demand is cooling more broadly.