U.S. Bitcoin Funds Record $398.6 Million in Outflows on November 2
Key Facts
U.S.-listed Bitcoin funds recorded net outflows of $398.6 million in the November 2 session, followed by $115.6 million in the November 3 session, according to Farside Investors data. The negative flows came in two consecutive sessions at the start of the month, while the products’ contributions differed in the second session. Fund flows put investor demand through these products under scrutiny as new U.S. labor market data were released. Outflows on November 2 were lower than those recorded on October 30. Flow figures alone do not establish the reasons for investors’ decisions or the direction of sentiment.
The iShares Bitcoin Trust, known by the ticker IBIT, had the largest outflow on November 3, losing $95.0 million. By contrast, the Fidelity Bitcoin Trust, FBTC, recorded an inflow of $6.8 million in the same session. The Bitwise Bitcoin Fund, BITB, also attracted inflows of $21.9 million. The Morgan Stanley Bitcoin Trust, MSBT, recorded inflows of $3.3 million. The figures show that flows did not move in a uniform direction across products that day, despite the net outflow recorded for the funds collectively.
Farside data show net outflows of $643.2 million on October 30, exceeding the amount recorded in the November 2 session. This places the start-of-month session in the context of selling pressure that emerged earlier, without establishing on its own that it was part of a sustained pattern. In the labor market, the U.S. economy added 29,000 nonfarm payroll jobs in September, while the unemployment rate stood at 4.2%, according to the Bureau of Labor Statistics. The bureau said nonfarm payroll employment and the unemployment rate “changed little” during the month. Average monthly job gains over the 12 months preceding September were 45,000, according to the same report.
The Bureau of Labor Statistics also revised its previous employment estimates downward, cutting July’s reading by 31,000 jobs and August’s by 29,000. Employment in the two months was therefore 60,000 jobs lower than previously estimated. In a report issued on November 3, the bureau said job openings in September remained at 7.5 million, while hires totaled 5.4 million and separations 5.3 million. It added that job openings, hires and separations “changed little” from the previous period. These data provide context for the labor market ahead of the next U.S. release, without determining its effect on Bitcoin funds in advance.
The Bureau of Labor Statistics scheduled the October employment situation report for November 6 at 8:30 a.m. Eastern Time. The report will follow the release of the third-quarter productivity and costs estimate on November 5. The bureau’s schedule also includes the October Consumer Price Index release on November 10 at 8:30 a.m. The jobs report will put the October reading alongside September data and the July and August revisions announced by the bureau. In daily market data, Bitcoin closed at $78,422.07 on November 4, according to EL7 data.