Spot Bitcoin ETFs Face $426M in Outflows, Total Reaches $723M in 48 Hours

On December 30, 2024, 12 spot Bitcoin ETFs reported a collective withdrawal of $426 million, extending a two-day streak that brought total outflows to $723 million, according to SoSoValue data.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw the largest outflow, losing $154.64 million, followed by Grayscale’s Bitcoin Trust (GBTC), which experienced withdrawals amounting to $134.5 million. BlackRock’s iShares Bitcoin Trust (IBIT), despite being praised as having the “greatest ETF launch in 2024,” faced its tenth outflow since inception, with $36.52 million withdrawn. Other funds, including Bitwise’s BITB, Grayscale’s Bitcoin Mini Trust, and ARK 21Shares Bitcoin ETF, also suffered substantial outflows.

Source: TradeDucky via X

Valkyrie’s Bitcoin Strategy ETF (BRRR) recorded comparatively smaller withdrawals of $10.96 million. None of the Bitcoin ETFs reported inflows on the day.

This outflow trend stretched further into Ethereum spot ETFs, as the asset class recorded net outflows of $55.4 million on December 30, bringing to a close four straight days of inflows. Among those, the worst-hit single asset, Fidelity’s Ethereum Fund, recorded $20.41 million worth of outflows, trailed by Grayscale’s Ethereum Trust and Mini Ethereum Trust, which logged $17.36 million and $13.75 million of outflows, respectively.

While the latter two represented withdrawals, December was an excellent month for Ethereum ETFs with over $2 billion net inflows for the month, demonstrating that investor interest in Ethereum-based products persists.

The sharp outflows underscore investor apprehension amid fluctuating cryptocurrency prices. Bitcoin, which traded at $92,458 at press time, experienced a slight dip of 1% on December 30. Ethereum followed suit, with its price falling to $3,353, reflecting a 9% monthly decline.

The cautious sentiment among investors stems from ongoing market volatility and year-end portfolio rebalancing. Analysts view the recent outflows as a short-term reaction rather than an indication of diminished long-term confidence in Bitcoin and Ethereum.

Source: The Kobeissi Letter via X

Despite the recent downturn, Bitcoin ETFs reported an impressive $35.66 billion in net inflows throughout 2024, surpassing early industry projections. BlackRock’s IBIT led the market with $37.31 billion in inflows, while Fidelity’s FBTC and ARK’s 21Shares Bitcoin ETF added $11.84 billion and $2.49 billion, respectively.

Experts remain optimistic about the long-term prospects of Bitcoin and Ethereum ETFs. “The recent outflows are part of normal market dynamics,” said a market analyst, emphasizing the robust fundamentals of these assets. As the market stabilizes, renewed inflows are anticipated, driven by technological advancements, increased regulatory clarity, and growing institutional interest.

The recent withdrawals highlight the cryptocurrency market’s inherent volatility. However, the strong inflows recorded earlier this year underscore the sustained interest in digital assets, with both Bitcoin and Ethereum positioned for future growth as the market matures.