Outflow from cryptocurrency ETFs in the US exceeded $540 million on Thursday

American spot cryptocurrency exchange-traded funds (ETFs) returned to net outflows on Thursday, November 5, 2026, with the largest products collectively losing over $540 million. The sell-off resumed after the market retraced the initial gains following the U.S. midterm election results. The data is provided by The Block.

FBTC and IBIT led the outflows

Among Bitcoin funds, FBTC from Fidelity led with $199.9 million, followed by IBIT from BlackRock with $105 million and GBTC from Grayscale with $49.9 million. Outflows were also recorded by EZBC from Franklin Templeton, HODL from VanEck, and ARKB from Ark Invest; other funds closed the day with zero flows.

In Ethereum funds, ETHA and ETHB from BlackRock led the outflows with $75.2 million and $22 million in redemptions, respectively; withdrawals were also seen in FETH from Fidelity and ETHE from Grayscale. The spot ETF on Solana lost $1.2 million, the ETF on Zcash $11 million, and on Hyperliquid $3 million, according to SoSoValue. The only product without movement was the ETF on XRP. The total outflow from major American crypto ETFs exceeded $1.1 billion for the week.

Bitcoin turned negative following Nasdaq

Bitcoin fell by 5.6% on Thursday, erasing a 4% gain on Wednesday, which followed Tuesday's elections. Ether dropped even more, by 7.8%, and the GMCI 30 index, covering the 30 largest cryptocurrencies, lost 6.4%.

Technology stocks also suffered: the Nasdaq Composite decreased by 5.5%, and the S&P 500 by 4.4%. Investors are assessing the impact of potential restrictions on AI infrastructure development after Democrats gained a majority in the House of Representatives and the Senate.

"Regulatory and political risks arise at a time when the so-called AI bet was already on shaky ground," said Kyle Rodda, senior financial markets analyst at Capital com. He pointed to disappointing reports and signs of slowing AI spending.

Axel Rudolph, chief technical analyst at IG, told The Block that Bitcoin "got caught up in the sell-off of AI assets as investors quickly unwind risk in the technology and cryptocurrency markets." According to him, Bitcoin's correlation with tech stocks made it vulnerable, and leveraged positions worth more than $1 billion were liquidated within 24 hours.

What to expect from the labor market

Friday's U.S. labor market report could complicate the situation, especially if the figures give the Federal Reserve more grounds for a rate hike. Economists expect about 60,000–65,000 new jobs, according to Daniela Hathorn, senior market analyst at Capital com. She warned that a strong report, especially with accelerating wage growth, could raise Treasury yields and the dollar.

Despite the market weakness, Andre Dragosh, head of European research at Bitwise, expects Bitcoin to outperform U.S. stocks as the AI bet unwinds. According to him, Bitcoin is currently more sensitive to the dollar and monetary policy expectations than to economic growth and may decouple from stocks as financial conditions improve.