Crypto ETFs Experience $387 Million Outflow as Bitcoin Price Falls
The crypto ETF market experienced significant fund outflows due to Bitcoin's sharp decline, falling below its all-time high of $108,000 to a current price of $93,613. In the past week, all Bitcoin spot ETFs approved in the United States recorded a combined outflow of $387.54 million, totaling net outflows of $1.5 billion between December 26 and December 27, according to data from SoSoValue.
Midweek Relief for Bitcoin Spot ETFs
On Friday, the funds faced a massive outflow of $297 million, with Fidelity Investments' ETF, the Fidelity Wise Origin Bitcoin Fund (FBTC), leading at $208.20 million, marking its longest single-day outflow since launch. Other funds, including ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Valkyrie Bitcoin Fund (BRRR), and Invesco Galaxy Bitcoin ETF (BTCO), saw outflows of $112 million, $36 million, $10 million, and $14 million respectively.
Conversely, Thursday brought a positive shift as Bitcoin spot ETFs attracted $475.15 million in inflows from institutional investors. FBTC led with $254.37 million, followed by ARKB with $186.94 million. Smaller inflows included Grayscale’s Bitcoin Mini Trust (BTC) at $7.19 million and VanEck’s HODL at $2.70 million.
Beyond ETFs: A Week of Milestones in the Crypto Ecosystem
In broader developments, KULR Technology Group adopted Bitcoin as a corporate reserve, purchasing 217.18 Bitcoins valued at approximately $21 million on December 26. The firm allocated 90% of its surplus cash for this strategy, indicating future acquisitions.
Regulatory advancements occurred as Cambodia opened its borders to cryptocurrencies, allowing commercial banks and payment institutions to explore the crypto market under strict regulations, contingent upon obtaining operational licenses.
In legal news, Montenegro approved the extradition of Do Kwon, co-founder of Terra Labs, to the United States after meeting extradition criteria set by both the US and South Korea. The US was the first to request custody for prosecution of alleged criminal activities.