Bitcoin Funds Experience Fourth Straight Day of Over $1.5 Billion in Outflows
The week leading up to Christmas has been a tumultuous one for the cryptocurrency market, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) experiencing its largest-ever single-day outflow on December 24. The fund saw a staggering $188.7 million in outflows, surpassing its previous record of $72.7 million set just four days prior.
Outflows Continue Across the Board
According to CoinGlass data, all 11 United States-based spot Bitcoin ETFs saw joint total outflows hit $338.4 million on Christmas Eve. Since December 19, these funds have seen joint net outflows of a whopping $1.52 billion. This trend is a stark contrast to the strong early momentum that spot Bitcoin ETFs experienced after their January launch.
All-Time IBIT Flow Data Shows Rare Outflow Days
IBIT flow data reveals that the fund’s rare outflow days have been limited in number, with this latest record-breaking outflow being one of the most significant. This raises questions about the market’s overall sentiment and whether it is indicative of a larger trend.
Ether ETFs Experience Two Consecutive Days of Inflows
In contrast to the Bitcoin funds, Ether ETFs experienced two consecutive days of inflows in the lead-up to Christmas. The Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF saw respective December 24 outflows of $83.2 million and $75 million, while the Bitwise Bitcoin ETF was the only one to see an inflow, which hit $8.5 million.
US Spot Ether ETFs Experience Momentum
Launched in July, the Ether funds had a slow start compared to the strong early momentum that spot Bitcoin ETFs saw after their January launch. However, since late November, the Ether ETFs have gained traction, having seen an 18-day inflow streak that was broken on December 18.
Ether Set to Perform Better Than BTC in January?
Bitcoin was trading at $98,035, up 4.59% in the last 24 hours, while Ether was trading at $3,420, up 3.28% over the same time, according to CoinMarketCap data at the time of writing. TradingView shows Ether’s relative strength to Bitcoin – the ETH/BTC ratio – is currently at 0.035. Some analysts say that ETH may outperform BTC in January 2025.
US Bitcoin ETFs Surpass Gold Funds for First Time
Meanwhile, net assets in US Bitcoin ETFs surpassed gold funds for the first time on December 16, according to K33 Research. On December 16, the US Bitcoin funds collectively broke $129 billion in assets under management (AUM), surpassing US gold ETFs, which held just shy of that figure.
Assets Under Management (AUM)
The AUM figure includes spot BTC ETFs as well as ETFs that track Bitcoin’s performance using financial derivatives, such as futures. This milestone marks a significant shift in the market’s sentiment and highlights the growing popularity of Bitcoin ETFs among investors.
Conclusion
The past week has been eventful for the cryptocurrency market, with BlackRock’s iShares Bitcoin Trust ETF experiencing its largest-ever single-day outflow on December 24. The Ether funds have seen two consecutive days of inflows, while US Bitcoin ETFs surpassed gold funds for the first time on December 16. As we look ahead to January 2025, analysts predict that Ether may outperform BTC.
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