The sustained outflows from Bitcoin ETFs reflect a growing sense of caution among institutional investors amid volatile market conditions.
On December 23, 2024, US-based Bitcoin spot exchange-traded funds (ETFs) recorded substantial net outflows totaling approximately $227 million, according to data from SoSoValue. This movement reflects a growing trend among investors to reduce exposure to Bitcoin BTC $110 251 24h volatility: 2.4% Market cap: $2.20 T Vol. 24h: $74.03 B amid recent market volatility.
Fidelity Wise Origin Bitcoin Fund (FBTC)led the charge, experiencing a net outflow of $145.97 million in a single day, continuing its negative streak. Last week, the fund also led to a massive $672 million in daily outflows on Thursday, with $208.5 million withdrawn.
Grayscale Investments Sees Notable Withdrawals
Following in the footsteps of FBTC, Grayscale Investments saw notable withdrawals across its Bitcoin-focused products. The Grayscale Bitcoin Trust (GBTC) reported a net outflow of $38.39 million, adding to its historical net outflows of $21.332 billion. Similarly, the Grayscale Bitcoin Trust ETF (BTC) experienced a $6.19 million outflow, though its historical net inflows remain positive at $854 million.
Other major asset managers also experienced substantial outflows. Bitwise’s Bitcoin ETF (BITB) and Invesco Galaxy Bitcoin ETF (BTCO) lost $49.31 million together.
Meanwhile, VanEck’s Bitcoin ETF (HODL) reported a smaller outflow of $2.64 million, highlighting a broader investor retreat from these assets.
While most Bitcoin ETFs struggled, BlackRock’s Bitcoin ETF (IBIT) stood out as an outlier, attracting $31.66 million in net inflows on the same day. This brings IBIT’s cumulative historical inflows to $37.361 billion, underscoring investor confidence in BlackRock’s offerings despite the bearish market.
Current State of Bitcoin Spot ETFs
As of December 23, the total net asset value of Bitcoin spot ETFs stands at $105.084 billion, representing 5.7% of Bitcoin’s overall market capitalization.
According to SoSoValue’s data, these ETFs’ cumulative historical net inflow has reached $35.825 billion, underscoring their significant role in the digital asset investment landscape.
Meanwhile, the recent outflows coincide with a broader downturn in the crypto market. Over the past few days, Bitcoin’s price has been on a downward trajectory, trading at $93,246.26 on Tuesday, a 1.94% decrease from the previous day.
The decline is part of a larger trend, with BTC falling approximately 10% over the past week. Analysts attributed the slump to the Federal Reserve’s cautious outlook for 2025, despite a significant interest rate cut in 2024, which has tempered investor enthusiasm.
Investor Sentiment and Future Outlook
The sustained outflows from Bitcoin ETFs reflect a growing sense of caution among institutional investors amid volatile market conditions. However, the inflows into BlackRock’s IBIT ETF suggest that some investors still see long-term potential in Bitcoin as an asset class.
With the crypto market facing macroeconomic headwinds, analysts expect ETF issuers to adapt their strategies in the coming months to regain investor confidence.
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