Bitcoin investors withdrew near-record amounts from spot BTC ETFs as BTC dropped 2.3%, reflecting market caution.
Bitcoin recorded the highest ETF inflows in 2024, driven by strong institutional interest.
Six of 11 S&P 500 sectors experienced outflows in 2024, indicating shifting investor preferences.
The market trends of cryptocurrency and ETF market in late 2024 was quite volatile due to a great change in attitude of investors along with the changing condition of market. Bitcoin was relatively volatile and largely affected the trend.
Bitcoin Volatility and Outflows
In January 2025, Bitcoin fell below the psychological barrier of $100,000 as liquidations continued to mount and massive outflows were witnessed from U.S.-listed spot Bitcoin ETFs. On January 8, investors withdrew $569.1 million – the second largest daily outflow ever and very close to the $671.9 million outflow on December 19, 2024.
The worst hit was the Fidelity Wise Origin Bitcoin Fund, which siphoned off 45% to take $258.7 million on a single day. This is partly because of the apprehensions surrounding the U.S. Federal Reserve’s intentions of putting in more restrictive monetary policies by 2025. However, the overall sentiment was upbeat as the Crypto Fear & Greed Index continued to be in “Greed” at score 69 while from December “Extreme Greed” at 78.
Bitcoin had crossed the $100,000 resistance barrier in December 2024 itself when President Trump had won during the election but was indecisive at the start of early 2025. According to analysts, the strong US economic data and apprehension of the interest rate hike are the cautioning factors that deter investors.
ETF Market Highlights
Overall, 2024 has been a fair start thus far in the expanded universe for sector ETFs following sectors of the S&P 500. This especially has brought sectors to rally $2.44 billion to the dollar in sector funds-with such giants among the biggest winners each
In December 2024, ETFs experienced a net outflow of $2.94 billion. The most money was put into Technology Select Sector SPDR Fund (XLK), a sum of $388.03 million. At the same time, outflows from Financial Select Sector SPDR Fund (XLF) hit $1.52 billion.
Commodities and Bitcoin ETFs
Commodity ETFs also felt the effects of changing investor appetites:
Gold SPDR Gold Shares ETF (GLD): Inflows $366.08 million.
Silver iShares Silver Trust ETF (SLV): Inflow of $788.2 million.
U.S. Oil Fund, LP ETF (USO): Outflow of $638.4 million.
ProShares Short BTC ETF, captured inflows worth $109.03 million. So, the market participants did not know the directions that are developed lately.
Bitcoins and ETFs seem somewhat muddled coming into 2025. High volatility early in the year sends out cautionary signals; all the strong institutional support back in 2024 does indicate strength resilience for the long-term investor, though. Investors will certainly keep a sharp eye on these changes as Fed policies and other global economic trends with time go forward.
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