TLDR
- Bitcoin-focused ETFs noted a net outflow of $582 million on Wednesday, marking the second-largest exit in their history.
- Funds tied to Ethereum experienced a hefty outflow to the tune of $159.3 million.
- Fidelity's FBTC topped the list with a $258 million withdrawal, highlighting its prominence in the market.
- Amid various economic concerns, the price of Bitcoin plummeted to $92,500.
- December 2024 showcased a surge in ETF acquisitions, with purchases hitting 51,500 BTC, far exceeding the 13,850 BTC that was mined.
U.S.-listed cryptocurrency ETFs Substantial fund withdrawals were observed this past Wednesday within the crypto sector. A confluence of adverse economic outlooks led to a withdrawal exceeding $740 million, affecting both Bitcoin and Ethereum funds.
Eleven Bitcoin ETFs, according to SoSoValue data, witnessed a $582 million net outflow, almost reaching the previous peak of $680 million seen on December 19.
Among numerous ETFs, Fidelity’s FBTC emerged as the hardest hit with a $258 million outflow, setting a new high for such activity. BlackRock’s IBIT was not far behind, suffering a $124 million withdrawal.
Ethereum ETFs have not been immune to market pressures, having experienced a $159.3 million outflow—the highest since a $162 million withdrawal noted on July 26.
Mirroring these trends, Bitcoin saw its value dip to $92,500, a drop from its January 7 peak of $102,000, reflecting a 6.21% fall within a day.
Recent documentation from the Federal Reserve highlighted anxiety over policy-driven inflation, leading to a jittery bond market and affecting risk-prone assets like cryptocurrencies.
Reflecting on December 2024, Bitcoin ETFs showcased strong purchasing spirits, amassing 51,500 BTC—a number significantly higher than the 13,850 BTC mined in the same timeframe, underlining ETFs' rising market sway.
Throughout 2024, the cryptocurrency domain exhibited vigorous growth, with Bitcoin surging by 116%, a backdrop to the strengthening appeal of institutional investment channels.
The data implies Bitcoin and Ethereum have mirrored each other in returns from cycle lows, with both posting around 4.0x growth, signifying sustained investor interest.
Despite recent outflows, ETF trading volumes have retained their vibrancy, indicating ongoing investor engagement in turbulent times.
Insights from December 2024 underscored the enlarging footprint of ETF products in crypto markets, where buying volumes surpassed new Bitcoin output nearly fourfold.
