Bitcoin Spot ETFs Experience $227 Million in Net Outflows
On December 23, 2024, Bitcoin spot exchange-traded funds (ETFs) in the US experienced net outflows of about $227 million, highlighting a trend among investors to decrease exposure to Bitcoin amid market volatility.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led these outflows with $145.97 million withdrawn in one day, continuing a downward trend that included a significant $672 million in daily outflows last week.
Grayscale Investments Sees Notable Withdrawals
Grayscale Investments reported withdrawals from its Bitcoin-focused products, including a net outflow of $38.39 million from the Grayscale Bitcoin Trust (GBTC), which has accumulated historical net outflows of $21.332 billion. The Grayscale Bitcoin Trust ETF (BTC) also saw a $6.19 million outflow, although it maintains positive historical net inflows of $854 million.
Other asset managers faced substantial losses as well, with Bitwise’s Bitcoin ETF (BITB) and Invesco Galaxy Bitcoin ETF (BTCO) together losing $49.31 million. VanEck’s Bitcoin ETF (HODL) reported a smaller outflow of $2.64 million, indicating a broader retreat from these assets.
In contrast, BlackRock's Bitcoin ETF (IBIT) attracted $31.66 million in net inflows on the same day, bringing its cumulative historical inflows to $37.361 billion, reflecting investor confidence despite a bearish market.
Current State of Bitcoin Spot ETFs
As of December 23, the total net asset value of Bitcoin spot ETFs is $105.084 billion, accounting for 5.7% of Bitcoin’s overall market capitalization. Cumulative historical net inflows into these ETFs have reached $35.825 billion, indicating their importance in the digital asset investment landscape.
These outflows align with a broader downturn in the crypto market. Bitcoin's price was $93,246.26 on Tuesday, down 1.94% from the previous day and approximately 10% over the past week. Analysts attribute this decline to the Federal Reserve's cautious outlook for 2025, despite a notable interest rate cut in 2024.
Investor Sentiment and Future Outlook
The ongoing outflows from Bitcoin ETFs reflect caution among institutional investors in volatile market conditions. However, inflows into BlackRock’s IBIT ETF suggest some investors still recognize long-term potential in Bitcoin. Analysts anticipate that ETF issuers will adapt strategies over the coming months to rebuild investor confidence.