Bitcoin, Ethereum, and Solana ETF Outflows Jump as Key Fear Gauge Drops After Midterms

American investors are pulling money out of crypto ETFs after last week’s midterm elections, in which Democrats took control of both the House of Representatives and the Senate. Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL) ETFs have all seen millions of dollars in outflows, while prices have stayed subdued.

Bitcoin, Ethereum, and Solana ETF Outflows Have Jumped

American investors continue to pull money out of cryptocurrency ETFs. SoSoValue data shows spot Bitcoin ETFs saw more than $411 million in outflows on Friday, with BlackRock’s IBIT accounting for $403 million of that. 

Bitwise’s BITB and Ark’s ARKB each shed $20 million, while Grayscale’s GBTC lost $11.1 million. Fidelity’s FBTC was the outlier, adding $42.8 million in assets. In total, Bitcoin funds have suffered $1.2 billion in outflows this month after losing $515 million last month.

Ethereum funds have also lost substantial assets. They lost $93 million on Friday after losing $99 million a day earlier. In total, investors have redeemed assets worth $365 million this month after losing $1.6 billion last month. Solana ETFs lost over $26 million in assets in November after losing $143 million a month earlier. 

Crypto Fear and Greed Index Has Also Slumped

The ongoing ETF outflows have coincided with the falling Crypto Fear and Greed Index, which has dropped to the fear zone of 32. It recently peaked at the greed zone of 81 when Bitcoin and most altcoins were in an upbeat tone. In most cases, cryptocurrencies tend to drop whenever the index is falling.

Investors are coming to terms with the changes in Washington, where Democrats won the Senate and the House of Representatives. Elizabeth Warren, a top crypto critic, is expected to chair the Senate Banking Committee.

One of the key setbacks for Bitcoin and other altcoins is that the probability that the Senate will pass the CLARITY Act has now dwindled. The bill would have streamlined the crypto industry by passing more power to the CFTC from the SEC. 

Democrats will also likely seek more investigations into actions of the Trump administration. For example, they will query the Office of the Comptroller of the Currency’s (OCC) decision to give World Liberty Finance a provisional bank charter. 

Crypto ETF outflows have also risen after the recent macro events in the United States. The Federal Reserve left rates unchanged in the last meeting, with two officials voting to hike. After last Friday’s strong jobs numbers, investors are now betting that the Fed will hike rates by 0.25% in the December meeting.

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