Crypto Market Sees a Christmas Miracle: Bitcoin ETFs Rebound with $475 Million Inflows

As the world celebrated Christmas, the cryptocurrency market witnessed a surprising turn of events. After four consecutive days of outflows totaling over $1.5 billion, United States Bitcoin exchange-traded funds (ETFs) saw a significant reversal on December 26, with net inflows of $475.2 million. This sudden change in investor sentiment has left many wondering if this is a sign of things to come in the new year.

A Closer Look at the Numbers

The 11 Bitcoin ETFs tracked by CoinGlass collectively saw a substantial influx of capital, with the Fidelity Wise Origin Bitcoin (BTC) Fund leading the charge with $254.4 million in inflows. The ARK 21Shares Bitcoin ETF (ARKB) followed closely with $186.9 million, while BlackRock’s iShares Bitcoin Trust ETF (IBIT) netted $56.5 million. Even smaller players like Grayscale’s mini Bitcoin ETF and VanEck’s ETF saw modest inflows of $7.2 million and $2.7 million, respectively.

A Much-Needed Boost

This sudden influx of capital comes as a welcome relief after a tumultuous period for Bitcoin ETFs. Between December 19 and 24, the funds experienced total net outflows of $1.52 billion, with IBIT seeing its largest-ever single-day net outflow of $188.7 million on December 24. However, the Christmas miracle has helped stem the bleeding, and investors are now eagerly watching to see if this trend will continue.

Ether ETFs Also See Inflows

It’s not just Bitcoin ETFs that are experiencing a resurgence. Ether (ETH) ETFs have seen their third consecutive trading day of joint net inflows, totaling $301.6 million over that period. On December 26, ETH funds netted $117.2 million, with Fidelity’s ETF leading the way with $83 million in net inflows. BlackRock’s iShares Ethereum Trust ETF (ETHA) and Grayscale’s ETH trust also saw significant inflows.

What’s Behind the Sudden Change?

As Bitcoin and Ether continue to experience price fluctuations, investors are likely taking a closer look at the underlying fundamentals of the market. With the year drawing to a close, it’s possible that investors are rebalancing their portfolios and taking advantage of perceived value in the crypto space.

A Year in Review

As we approach the end of the year, it’s worth taking a step back to look at the bigger picture. In their inaugural year, Bitcoin ETFs have seen total net inflows of $35.94 billion, with total assets under management (AUM) of $111.87 billion. Ether ETFs, meanwhile, have taken in $2.63 billion in net inflows and have an AUM of around $12 billion.

What’s Next?

As the crypto market continues to evolve, one thing is certain – investors will be keeping a close eye on the space in the coming year. With only three trading days left in 2023, it will be interesting to see if this Christmas miracle is a sign of things to come. Will the trend continue, or is this just a brief respite from the volatility? Only time will tell.

What are your thoughts on the sudden rebound in Bitcoin ETFs? Share your insights in the comments below!

Source: Cointelegraph.com

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