Bitcoin spot exchange-traded funds (ETFs) have experienced four consecutive days of withdrawals, culminating in significant outflows on Christmas Eve. Data from SoSovalue on Dec. 24 revealed that ETFs recorded combined outflows of $338.4 million on Christmas Eve. The largest single-day outflow was seen in BlackRock’s iShares Bitcoin ETF, which lost $188.7 million. Fidelity’s Bitcoin ETF followed with $83 million in withdrawals, while Ark and 21Shares’ Bitcoin ETF saw net outflows of $75 million. Bitwise’s BITB fund was the only ETF to record positive net inflows, adding $8.5 million, while the remaining funds did not see any activity on that day.
This sudden downturn in Bitcoin ETF flows marks a significant reversal from the previous trend of positive flows. Over the past four trading days, Bitcoin ETFs have experienced cumulative outflows exceeding $1.5 billion, the most significant downturn since the November elections. Despite this recent trend, the ETFs still have a cumulative flow of $35.49 billion and hold $110 billion worth of digital assets.
In contrast to Bitcoin ETFs, Ethereum-focused spot ETFs continued to attract investor interest, with $53.5 million in net inflows reported for ETH-related investment vehicles. BlackRock’s Ethereum fund led the way with $43.9 million in inflows, followed by Bitwise’s Ethereum ETF with $6.2 million and Fidelity’s Ethereum product with $3.45 million. Despite initially lagging behind Bitcoin ETFs in performance, Ethereum funds have gained traction in the market since their launch in July. Recently, they have witnessed a surge in inflows, which continued for 18 consecutive days before tapering off.
Analysts at Matrixport highlighted that the sustained inflows into Ethereum funds underline the continued appeal of Ethereum among institutional investors and solidify its position as a key digital asset in the crypto ecosystem. As of Dec. 24, Ethereum funds have accumulated a collective flow of $2.51 billion.
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In conclusion, Bitcoin ETFs have experienced a notable downturn in flows over the past few days, with significant outflows recorded on Christmas Eve. In contrast, Ethereum-focused spot ETFs have continued to attract investor interest, with steady inflows reported. Despite the volatility in the crypto market, institutional investors are showing a growing interest in digital assets such as Bitcoin and Ethereum, further solidifying their presence in the financial landscape. It will be interesting to see how these trends evolve in the coming days and how they impact the overall crypto market.
