Key Points
- Bitcoin ETFs experienced a significant outflow of $568.8 million in a single day due to a shift in investor sentiment.
- Ethereum ETFs closed 2024 with an impressive $35 billion inflows despite recent outflows.
Bitcoin ETFs Witness Major Outflows
Bitcoin Spot ETFs saw a dramatic shift in investor sentiment, leading to outflows totaling $568.8 million in one day. The Fidelity Wise Origin Bitcoin Fund led the decline with its largest-ever single-day outflow of $258.7 million, accounting for 45% of the total net outflow.
Other ETFs like Ark 21Shares’ ARKB and BlackRock’s IBIT also saw substantial withdrawals of $148.3 million and $124 million respectively. This marked the second-highest daily net withdrawal since the inception of Bitcoin ETFs.
This outflow coincided with a significant drop in Bitcoin’s price, falling below $95k shortly after surpassing the $100k milestone.
Analysts’ Perspective
Ryan Lee, Chief Analyst at Bitget Research, attributed Bitcoin’s dip to strong US economic data pointing toward potential interest rate hikes. The Crypto Fear & Greed Index also shifted from “Extreme Greed” to “Greed” over the past month, indicating tempered optimism among market participants.
However, some traders have been cautious against drawing definitive conclusions, suggesting that Bitcoin’s price volatility may not yet offer a clear direction for the market’s next move.
Resilience of Ethereum ETFs
Despite the dominance of Bitcoin ETFs, Ethereum ETFs are steadily closing the gap, underscored by their impressive $35 billion inflows in 2024, despite recent outflows. Crypto analyst Lark Davis’ prediction of ETFs potentially holding 10-20% of Bitcoin’s supply during peak cycles fuels concerns over a supply crunch.
However, Ethereum’s resilience and growing investor confidence signal a shift. If these trends persist, 2025 could herald a pivotal moment, positioning Ethereum ETFs as leaders in the crypto investment landscape.
