Significant Outflows from Bitcoin ETFs
On December 19, spot Bitcoin exchange-traded funds (ETFs) in the United States reported outflows totaling $680 million. This development ended a 15-day streak of inflows, during which the funds accumulated over $6.7 billion. The drop in Bitcoin's price below $96,000 was attributed to the Federal Reserve's cautious outlook on future interest rate cuts.
According to data from SoSoValue, the Fidelity's FBTC fund led the outflows, losing $208.55 million, followed by Grayscale Bitcoin Mini Trust with $188.6 million and ARKB ARK 21Shares, which recorded outflows of $108.35 million.
Major Outflows from Bitcoin ETFs
Other funds that experienced significant outflows include:
Grayscale's GBTC: $87.86 million
Bitwise BITB: $43.61 million
BTCO by Invesco Galaxy: $25.97 million
VanEck's HODL: $10.91 million
BRRR Valkyrie: $8.19 million
Amid the sell-off, WisdomTree's BTCW stood out as an exception, attracting inflows of $2.05 million. In contrast, BlackRock's IBIT and two other Bitcoin ETFs reported no changes in flows for the day.
Rising Trading Activity and BTC Price Decline
Trading Activity Spikes
Despite the outflows, Bitcoin ETFs saw a surge in trading activity, with total trading volume reaching $6.31 billion, up from $5.86 billion the previous day.
Bitcoin Price Drops
Bitcoin fell by 4.4% to $96,751, largely due to the Federal Reserve's interest rate decision. The Fed implemented a widely anticipated 0.25% rate cut, bringing the total rate reduction for the year to 1%. However, the cautious outlook for further cuts in 2025 and expectations of reaching a 2% inflation target only by 2026–2027 dampened investor sentiment. This hawkish stance contributed to a 4.5% drop in the broader crypto market, now valued at $3.51 trillion.
Ethereum ETFs Face Declining Momentum
Spot Ethereum ETFs Struggle
Spot Ethereum ETFs also had a challenging day, with $60.47 million in outflows, breaking an 18-day streak of inflows. The largest outflows were recorded by Grayscale's ETHE, which lost $58.13 million. Other notable outflows included:
ETHW by Bitwise: $6.78 million
Grayscale Ethereum Mini Trust: $3.18 million
QETH by Invesco: $2.36 million
Inflows Partially Offset the Trend
Conversely, Fidelity's FETH and VanEck's ETHV managed to attract inflows of $5.05 million and $4.94 million, respectively, partially offsetting the broader outflows.
Ethereum ETF Overview and ETH Price
Cumulative Net Inflows Remain Positive
Despite the daily outflows, cumulative net inflows for Ethereum ETFs remain positive at $2.4 billion.
ETH Price Decline
Ethereum’s price reflected the bearish market sentiment, dropping 8.1% over the past day to $3,378 per coin.
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