As the holiday season unfolds, the crypto market is witnessing contrasting trends for Bitcoin and Ethereum exchange-traded funds (ETFs). On December 23, Bitcoin ETFs faced significant outflows, while Ethereum ETFs enjoyed substantial inflows, highlighting the evolving dynamics of the cryptocurrency market.
Bitcoin ETFs Face $226 Million in Outflows
The day before Christmas Eve brought turbulence to Bitcoin ETFs. Data reveals that 12 U.S. spot Bitcoin ETFs saw a combined outflow of $226.56 million, reflecting a drop in investor confidence amid the holiday lull.
Despite these losses, BlackRock’s IBIT managed to buck the trend, recording a $31.66 million inflow. However, the gains were overshadowed by significant outflows from other funds:
- Fidelity’s FBTC: Experienced the largest loss, with $145.97 million withdrawn.
- Grayscale’s GBTC: Followed closely, losing $38.39 million.
- Invesco’s BTCO: Dropped by $25.56 million.
- Bitwise’s BITB: Faced a $23.75 million decline.
- Ark Invest’s ARKB and 21Shares’ ARKB: Recorded a combined $15.75 million outflow.
- Grayscale Bitcoin Mini Trust: Lost $6.18 million.
- VanEck’s HODL: Decreased by $2.62 million.
Despite these setbacks, the cumulative net inflows for Bitcoin ETFs remain positive for the year, standing at $35.83 billion since January 11, 2024. Data from Sosovalue.com shows that $3.52 billion in Bitcoin-related trades occurred on December 23, with the ETFs collectively holding $105.08 billion in Bitcoin reserves.
Ethereum ETFs Reap $130 Million in Inflows
In contrast to Bitcoin’s struggles, Ethereum ETFs celebrated a day of inflows, attracting $130.76 million on December 23. This marks a significant boost for the nine Ethereum-focused funds, reflecting growing investor interest in the second-largest cryptocurrency.
Key highlights include:
- BlackRock’s ETHA: Led the pack with an inflow of $89.51 million.
- Fidelity’s FETH: Followed with $46.37 million in gains.
- Bitwise’s ETHW: Attracted $963,720 in new investments.
However, it wasn’t all positive, as Grayscale’s Ethereum Mini Trust recorded a minor outflow of $6.09 million.
Since July 23, cumulative net inflows for Ethereum ETFs have reached $2.46 billion, showcasing steady growth. According to Sosovalue.com, Ethereum ETFs saw $494.25 million in trading volume on December 23, and now hold $12.05 billion worth of Ether. This represents 2.94% of Ethereum’s total market capitalization.
What These Trends Mean for Crypto Investors
The contrasting fortunes of Bitcoin and Ethereum ETFs underscore the shifting dynamics within the cryptocurrency market. While Bitcoin ETFs face headwinds, Ethereum’s growing appeal is evident in its increasing reserves and positive net inflows.
As we approach the end of the year, these trends highlight the importance of monitoring market movements and diversifying investments to capitalize on emerging opportunities.
