US Bitcoin and Ethereum ETFs Witness Record Outflows Breaking Streak
By: Isha Das
The cryptocurrency market saw a piercing disruption as US-based Bitcoin and Ethereum exchange-traded funds (ETFs) experienced significant outflows on December 19. This shift halts a prolonged period of sustained investor inflows to these funds. The data, sourced from SpotOnChain, indicates that the Bitcoin ETFs endured their most substantial single-day outflows since their inception in January. The previous record outflow was $563 million set in May, but the new total has reached $671.9 million, marking a notable financial shift in the crypto sector.
Prominent players within this upheaval included Fidelity's FBTC, Grayscale's Bitcoin Mini Trust, and ARK 21Shares' ARKB. Fidelity's fund alone faced outflows amounting to $208 million, while Grayscale and ARK had outflows of $188 million and $108 million, respectively. Striking a contrasting scenario, WisdomTree's BTCW ETF managed to secure $2 million in inflows, demonstrating investment resilience. Despite this outperformance, the routes taken by BlackRock's IBIT and other ETFs remained unchanged, revealing a stagnation in their movements.
Ethereum ETFs weren't spared this investor withdrawal phenomena as they recorded outflows totaling $60.47 million, disrupting an 18-day inflow accumulation streak. Grayscale's ETHE emerged as the most affected with $58.13 million in outflows. Bitwise's ETHW also saw an exodus of $6.78 million, while Invesco's QETH and Grayscale's Ethereum Mini Trust experienced losses over $5 million. Nonetheless, some sector participants like Fidelity's FETH and VanEck's ETHV ETFS exhibited minor positive gains, with contributions of $5.1 million and $4.9 million, respectively. Despite these inflows, they were insufficient to balance the market's overall downtrend.
In the background, market analysts cite growing uncertainty from Federal Reserve policies as potential drivers of these significant financial movements. The distribution of asset flows in both major digital assets reflects broader market trends, as portfolios are being restructured amid anticipation of monetary policy shifts. These changes are prompting investors to recalibrate and potentially bank on short-term gains amidst a volatile economic environment. This unprecedented withdrawal from Bitcoin and Ethereum ETFs showcases the sensitive and responsive nature of the crypto financial markets.
