Bitcoin ETF inflows return as US crypto legislation faces delays - Crypto News
US spot Bitcoin ETFs attracted $74.6 million on Nov. 4, reversing three consecutive sessions of withdrawals, as institutional interest remains intact despite political uncertainty.
US spot Bitcoin ETFs attracted $74.6 million on Wednesday, Nov. 4, according to Farside Investors, reversing three consecutive sessions of withdrawals totaling approximately $1.16 billion. The positive total concealed a substantial difference between the largest funds, with Fidelity's FBTC attracting $236.7 million while BlackRock's IBIT recorded $201.2 million in withdrawals.
Bitcoin had initially rebounded above $77,000 on Nov. 4 after approaching $75,700 during the election count. Ryan Kirkley, co-founder and CEO of Global Settlement Network, described the return of capital as encouraging, while cautioning against treating one session as evidence that the selling had ended.
Institutional demand remains intact
Kirkley interpreted the split between Fidelity and BlackRock as investors adjusting exposure rather than returning uniformly. He emphasized that institutional investors are still making decisions based on liquidity, monetary policy and portfolio allocation.
I don't think the election fundamentally changes Bitcoin's outlook. Institutional investors are still making decisions based on liquidity, monetary policy and portfolio allocation.
Kirkley said the following weeks would offer a better indication of whether investment demand was recovering consistently. Dan Khus, chief analyst at LVRG Research, also expects economic conditions and institutional investment to carry more weight over time.
Divided government adds uncertainty
Khus warned that Democratic control of Congress alongside a Republican presidency could complicate negotiations over cryptocurrency rules and fiscal priorities. He noted this divided government could heighten policy uncertainty around crypto regulation, potentially weighing on Bitcoin in the near term.
The Democratic sweep in the 2026 midterms introduces a period of divided government that could heighten policy uncertainty around crypto regulation and fiscal priorities, potentially weighing on Bitcoin in the near term as markets price in greater legislative gridlock.
Kirkley identified the CLARITY Act as a particular concern, though disagreements had already slowed progress while Republicans controlled Congress. The bill passed the House on July 17, 2025, with 78 Democrats joining Republicans to approve it by 294 votes to 134.
Institutional adoption depends on practical applications
For financial institutions, Kirkley said unresolved questions concern custody, payments, settlement and compliance. Clearer requirements would help firms decide where to commit resources, even if the legislative process moves more slowly.
Kirkley also pointed to the divergence between Bitcoin and cryptocurrencies associated with President Donald Trump, noting that politically linked tokens are more sensitive to changes in an individual politician's influence. He questioned whether the industry had placed too much emphasis on securing political allies through campaign spending.
I think crypto has put too much emphasis on securing political allies and not enough on building support for its practical applications across both parties.
Looking toward 2027, Kirkley expects institutional attention to remain concentrated on payments, stablecoins and settlement, identifying expensive international transfers and fragmented systems as problems businesses still need to solve. Khus similarly expects Bitcoin's longer-term direction to depend more on macroeconomic conditions than any single party outcome.
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