Introduction
Bitcoin exchange-traded funds (ETFs) in the U.S. are losing funds. Meanwhile, for three days, BTC ETFs saw outflows while prices dropped below $93,000. The Federal Reserve’s recent rate decision added pressure.
ETF Outflows: Key Data
According to SosoValue, BTC ETFs recorded $226.56 million in inflows on Dec. 23. However, this followed three days of heavy outflows totaling $1.18 billion. The biggest outflows came from Fidelity’s FBTC, which lost $145.97 million. In addition, Grayscale’s GBTC saw $38.39 million leave. Other ETFs with negative flows include:
Invesco Galaxy’s BTCO: $25.56 million.
Bitwise’s BITB: $23.75 million.
ARK and 21Shares’s ARKB: $15.75 million.
Grayscale Bitcoin Mini Trust: $6.18 million.
VanEck’s HODL: $2.62 million.
On the other hand, BlackRock’s IBIT was the only ETF with inflows, gaining $31.66 million. Since its launch, IBIT has had a total of $37.36 billion in net flows.
Bitcoin Price Drops
BTC’s price fell 4% on Dec. 23, dropping from $96,386 to $92,600. At press time, BTC traded at $94,436. As a result, this marks an 11.9% decline over the last week. The Federal Reserve’s interest rate cut added to the decline. Although the move aimed to control inflation, it slowed enthusiasm in the crypto market. Many investors had expected more aggressive rate cuts. Optimism had been fueled by Trump’s crypto-friendly policies and support for a national Bitcoin reserve. However, the Federal Reserve’s stance tempered the excitement. Furthermore, concerns over inflation added to the uncertainty.
Ethereum ETFs Show Recovery
Ethereum ETFs gained strength on Dec. 23. Nine Ethereum ETFs recorded $130.76 million in inflows, breaking a two-day outflow streak of $135.4 million. BlackRock’s ETHA led with $89.51 million in inflows. Fidelity’s EFTH followed, adding $46.37 million. Other inflows included:
For example, Bitwise’s ETHW: $963.72k.
However, Grayscale Ethereum Mini Trust was the only fund with outflows, losing $6.09 million. The other ETFs remained neutral. Meanwhile, Ethereum traded at $3,412, up 3.3% in the past 24 hours.
Trading Volumes and Market Trends
The daily trading volume for BTC ETFs stood at $3.52 billion on Dec. 23. Notably, this was down from $4.09 billion the previous day. Total net inflows into Bitcoin ETFs reached $35.83 billion. Meanwhile, the difference between Bitcoin and Ethereum ETF flows shows changing investor sentiment. Bitcoin struggles to hold confidence, while Ethereum gains traction.
Key Takeaways for Bitcoin ETF Investors
BTC ETF Outflows Continue: Investors are pulling funds as Bitcoin struggles below $100,000. Next, Ethereum Gains Momentum: Inflows into Ethereum ETFs highlight growing interest in ETH. Additionally, Macro Factors Impact Crypto: Federal Reserve policies are shaping market sentiment. Finally, Volatility Remains High: Both Bitcoin and Ethereum face rapid price changes.
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