Positive Shift for U.S. Bitcoin ETFs: A Holiday Recovery
After a challenging streak of outflows, U.S. Bitcoin exchange-traded funds (ETFs) witnessed a significant positive turn on December 26, 2024, with notable net inflows totaling $475.2 million. This rebound followed a four-day period of substantial outflows amounting to over $1.5 billion, according to data from CoinGlass.
The Fidelity Wise Origin Bitcoin ETF led the charge, attracting $254.4 million in net inflows, reflecting renewed investor confidence. Following closely was the ARK 21Shares Bitcoin ETF, which garnered $186.9 million, while BlackRock's iShares Bitcoin Trust (IBIT) added $56.5 million.
Grayscale's Mini Bitcoin ETF and VanEck's Bitcoin ETF also joined the recovery trend, though on a smaller scale, with inflows of $7.2 million and $2.7 million, respectively.
The Context: A Recovery After Heavy Outflows
The resurgence in inflows marked a stark contrast to the activity observed earlier in the week. From December 19 to December 24, U.S. Bitcoin ETFs faced significant outflows, totaling $1.52 billion. December 24 alone saw IBIT record its largest single-day net outflow in history, reaching $188.7 million—more than doubling the previous high of $72.7 million set on December 20.
The Christmas holiday pause on December 25 provided some relief, paving the way for the dramatic recovery that followed the next day.
Ethereum ETFs Join the Upswing
U.S. Ethereum ETFs also benefited from the positive market momentum on December 26. Collectively, ETH ETFs recorded net inflows of $117.2 million. Fidelity's Ethereum ETF led the pack with $83 million in inflows, followed by BlackRock's iShares Ethereum Trust at $28.2 million. Grayscale's ETH Trust rounded out the gains with $6 million.
Outlook for Crypto ETFs
The impressive recovery in Bitcoin and Ethereum ETFs signals a renewed investor appetite for digital assets, even after a challenging stretch of outflows. As institutional interest continues to grow, ETFs remain a key vehicle for crypto adoption, offering both accessibility and diversification for market participants.
The shift in momentum highlights the resilience of the cryptocurrency market and the potential for further growth as 2024 comes to a close. While volatility remains a hallmark of the industry, the recent inflows underscore optimism for the year ahead.
Symbol Suggestion:
A dynamic arrow pointing upward intertwined with a Bitcoin symbol, accompanied by a glowing Ethereum logo, symbolizing recovery and growth in the digital asset space.
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