Bitcoin ETFs Record A Record Outflow Of $1.5 Billion

The BlackRock Bitcoin ETF is going through a tumultuous period marked by unprecedented capital outflows. The asset management giant recorded its largest daily outflow on December 24, part of a downward trend that has seen U.S. Bitcoin ETFs collectively lose over $1.5 billion in just four days.

A Record Hemorrhage for Bitcoin ETFs

On the eve of Christmas, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a record outflow of $188.7 million, according to CoinGlass data. This figure far exceeds the previous record of $72.7 million set a few days earlier.

This dark day was accompanied by significant withdrawals from other major managers, notably Fidelity with $83.2 million and ARK 21Shares with $75 million in outflows.

Only Bitwise managed to maintain a positive flow with a modest inflow of $8.5 million. In total, the twelve U.S. spot Bitcoin ETFs saw $338.4 million evaporate in just one day on December 24.

These movements are part of a broader context of investor disengagement, with cumulative net outflows reaching $1.52 billion since December 19. This trend stands in stark contrast to the initial enthusiasm that accompanied the launch of these products last January.

Ethereum ETFs Resist the Trend

While Bitcoin is under selling pressure, Ethereum ETFs show remarkable resilience. Ether-based funds recorded two consecutive days of positive inflows, with $53.6 million on December 24, following an injection of $130.8 million the day before. This performance is particularly notable as these products, launched in July, had a relatively modest start compared to their Bitcoin counterparts.

The positive momentum of Ethereum ETFs is accompanied by a rise in the price of Ether, which is now trading around $3,490, while Bitcoin remains around $98,000. Some analysts even anticipate outperformance of Ether compared to Bitcoin in January 2025, with the ETH/BTC ratio currently stable at 0.035.

Despite these turmoil, U.S. Bitcoin ETFs maintain their dominant position in the market, having surpassed gold ETFs for the first time in terms of assets under management on December 16, with over $129 billion in assets. This historic achievement underscores the growing maturity of the crypto market, even in the face of increased volatility.