Bitcoin’s recovery following the US midterm elections and the return of money into spot Bitcoin ETFs suggest that institutional interest remains strong. However, analysts warn that Democratic control of Congress could slow progress on US cryptocurrency legislation and create more uncertainty for the market.
Summary
- US spot Bitcoin ETFs attracted $74.6 million on November 4 after three consecutive days of withdrawals.
- Global Settlement Network CEO Ryan Kirkley believes institutional demand will continue to depend on liquidity, interest rates and portfolio decisions.
- LVRG Research analyst Dan Khus warned that divided government could create regulatory uncertainty and put pressure on Bitcoin in the short term.
- Financial institutions still need clearer rules for crypto custody, payments, settlements and compliance.
Ryan Kirkley, co-founder and CEO of Global Settlement Network, told crypto.news that the midterm election results have made the future of US crypto legislation less certain. However, he believes the business reasons behind institutional investment in digital assets remain unchanged.
He explained that banks, investment firms and businesses are still interested in using digital assets to make payments cheaper and financial settlements faster, even if political disagreements delay new regulations.
Dan Khus, chief analyst at LVRG Research, also believes that economic conditions and institutional investment will play a major role in Bitcoin’s long-term performance. However, he warned that uncertainty surrounding future legislation could put pressure on prices in the near term.
US spot Bitcoin ETFs received $74.6 million in new investments on November 4, according to Farside Investors. This ended three consecutive days of withdrawals that had totaled around $1.16 billion.
However, investment activity was mixed among the major funds. Fidelity’s FBTC attracted $236.7 million, while BlackRock’s IBIT recorded $201.2 million in withdrawals. Smaller inflows into other funds helped bring the overall ETF balance back into positive territory.
Kirkley described the return of investment as a positive sign but warned that one day of inflows does not necessarily mean selling pressure has ended.
He believes institutional investors continue to make decisions based on market liquidity, monetary policy and how Bitcoin fits into their investment portfolios rather than political developments alone.
Bitcoin also recovered above $77,000 on November 4 after falling close to $75,700 during the election results.
Meanwhile, Khus warned that Democrats gaining control of Congress while Republicans continue to hold the presidency could make it harder to pass new cryptocurrency legislation.
He said the political situation could increase uncertainty around crypto regulations and government spending priorities, potentially weighing on Bitcoin in the short term.
One major concern is the CLARITY Act, which aims to establish clearer rules for the US cryptocurrency market. Discussions have already faced disagreements over which regulators should oversee digital assets, stablecoin rewards and how different cryptocurrencies should be classified.
The bill previously received support from both parties in the House of Representatives, passing with 294 votes in favor and 134 against on July 17, 2025. However, its future progress could face additional challenges under the new political setup.
Kirkley said he would rather see lawmakers take more time to agree on clear and lasting rules than rush through legislation that could create more problems for the industry.
He added that financial institutions still need clear guidance on crypto custody, payments, settlements and compliance before committing more resources to digital assets.
Kirkley also highlighted the difference between Bitcoin and cryptocurrencies closely connected to President Donald Trump. He believes politically linked tokens are more exposed to changes in political influence, while Bitcoin has a wider investor base and stronger institutional presence.
He also argued that the crypto industry has spent too much time trying to gain political support instead of showing how digital assets can provide practical benefits to people and businesses across both political parties.
Looking ahead to 2027, Kirkley expects institutional interest to focus on payments, stablecoins and faster settlement systems. He pointed to expensive international transfers, outdated financial systems and money tied up in slow settlement processes as major problems that digital assets could help solve.
Security will also remain important. He warned that even advanced custody systems can face risks from stolen login details, weak internal controls and poorly secured connected applications.
Khus also believes Bitcoin’s long-term direction will depend more on economic conditions and institutional investment than on which political party controls Congress. He added that clearer regulations and policies supporting financial innovation could help strengthen confidence in the cryptocurrency industry.