U.S. Spot Bitcoin ETFs See $277.08M in Outflows Amid Market Uncertainty

U.S. spot Bitcoin exchange-traded funds (ETFs) faced significant outflows on December 20, 2024, with a combined net outflow of $277.08 million, according to data shared by Trader T on X (formerly Twitter).

This marks the second consecutive day of declines for Bitcoin ETFs, reflecting potential concerns about market sentiment or profit-taking among investors.

The majority of outflows were attributed to prominent funds, including ARK Invest’s ARKB, BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC. While most ETFs faced net losses, Grayscale Mini BTC and Franklin’s EZBC bucked the trend with modest inflows.

Major ETFs Affected

ARK Invest’s ARKB: $87.01 million in net outflows, representing the largest single loss.

BlackRock’s IBIT: $72.84 million in outflows, a significant figure for the world’s largest asset manager.Fidelity’s FBTC: $71.89 million in outflows, continuing a challenging period for Bitcoin ETFs.

Grayscale’s GBTC: $57.36 million in outflows, despite being one of the earliest Bitcoin-focused funds.

ETFs with Net Inflows

Grayscale Mini BTC (MBTC): Recorded $6.41 million in inflows, suggesting investor interest in smaller-cap ETFs.Franklin’s EZBC: Gained $5.61 million, likely benefiting from diversification strategies.

Market Context: Why the Outflows?

The significant outflows could be driven by several factors:

1. Profit-Taking by Investors

With Bitcoin’s price stabilizing above $100,000 in recent months, investors may be locking in profits, leading to reduced exposure in ETFs.

2. Year-End Portfolio Adjustments

The December timing aligns with traditional portfolio rebalancing by institutional investors, who may be reallocating funds to meet year-end financial goals.

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