Hello everyone, I am Penny.
Bitcoin ETFs are facing significant outflows, while Ethereum ETFs are seeing increasing inflows. This indicates a shift in investor sentiment.
On the eve of Christmas, U.S. Bitcoin exchange-traded funds (ETFs) experienced the largest single-day outflow on record, with BlackRock's iShares Bitcoin Trust ETF being the standout.
It is reported that IBIT's outflow reached $188.7 million, breaking the record of $72.7 million set four days ago. Overall, U.S. spot Bitcoin ETFs lost an astonishing $338.4 million on December 24, bringing the total net outflow since December 19 to $1.52 billion.
Even heavyweight funds like Fidelity's Wise Origin Bitcoin Fund FBTC and ARK 21Shares Bitcoin ETF in Algeria were not spared, facing outflows of $83.2 million and $75 million, respectively.
So, what is the only highlight?
Bitwise Bitcoin ETF achieved an inflow of $8.5 million.
Ethereum ETF begins to attract stable fund inflows
While Bitcoin funds are struggling, the U.S. spot Ethereum ETF saw inflows for the second consecutive day on December 24, adding $53.6 million after a surge of $130.8 million on December 23. Despite a slow start since its launch in July, these ETFs have gained attention since late November, thanks to 18 consecutive days of inflows. Analysts believe this momentum may indicate that Ethereum has the potential to outperform Bitcoin in January, with the ETH/BTC ratio currently at 0.035.
Bitcoin ETF surpasses gold funds
On December 16, the net assets of U.S. Bitcoin ETFs surpassed those of gold funds for the first time, marking a milestone. According to on-chain data, the total managed assets of Bitcoin ETFs reached $129 billion, exceeding those of gold funds, with this growth attributed to spot Bitcoin ETFs and ETFs tracking Bitcoin through derivatives.
Is altcoin season upon us?
Well, that's also a question every retail investor is pondering right now.
Based on comprehensive market information, Penny believes that altcoin season will arrive when all sectors (whether altcoins, stablecoins, or meme coins) see broader rises. In addition to other sectors, stablecoins are also gaining popularity as tools for global trading, with companies like SpaceX using them for seamless cross-border payments. This highlights how the growth of stablecoins is driving capital inflows into altcoins.
Additionally, clearer regulations are expected by 2025, and institutional interest in digital assets like Bitcoin is growing, which could create a domino effect benefiting altcoins.
