🎅 Bitcoin ETF suffered capital outflows at the end of the year, but its overall performance this year is still impressive
The performance of the Bitcoin ETF was a bit disappointing during Christmas week, recording its worst weekly decline since mid-September.
Since the Federal Reserve cut interest rates by 25 basis points and Powell's hawkish remarks in the early morning of December 19, the price of Bitcoin spot market has been falling. However, don't be too pessimistic. Analysts say that the overall performance of ETFs this year is the best in history.
Last week, the BTC ETF reached nearly $388 million in net outflows throughout the week. Among them, Fidelity's FBTC and BlackRock's IBIT became the biggest losers, with outflows of US$183 million and US$21.11 million respectively. Grayscale’s FBTC and ARK 21Shares’ ARKB experienced single-week net outflows of US$58.87 million and US$16.42 million respectively.
Despite significant outflows in the past two weeks, total net assets of Bitcoin ETFs have soared to $106.24 billion, according to SoSoValue.
Bloomberg analyst Eric Balchunas said that the total net assets of spot Bitcoin ETFs are close to the US$128 billion of gold ETFs. He also emphasized that the BTC ETF is a "disruptor" for traditional investors and predicted that their gold ETF will grow 3 times.
On the other side, Matthew Bartolini of State Street Global said that the global ETF industry is experiencing its best year ever. The launch of new ETFs, notably the Spot Bitcoin ETF in January, has added more than $50 billion in assets to the iShares Bitcoin Trust ETF (IBIT) since its launch on January 5, 2024.
Despite several downturns this year, the spot BTC ETF has completely exceeded expectations this year. According to data from Farside Invest, positive net flows to spot Bitcoin ETFs this year reached $35.24 billion, exceeding all expectations.
In general, the performance of Bitcoin ETF during the Christmas week may be just a short-term fluctuation. In the long run, its development prospects are still worth looking forward to. As the market continues to change and innovate, we have reason to believe that Bitcoin ETFs will continue to play an important role in the future, providing investors with more choices and opportunities.
