The cryptocurrency ETF market witnessed contrasting trends during the Christmas period, with Bitcoin ETFs experiencing significant outflows while Ether ETFs gained traction. BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the outflow streak, reflecting a shifting landscape in the digital asset investment space.
Record Outflows of Bitcoin ETFs
BlackRock’s Bitcoin ETF saw its largest single-day outflow on Christmas Eve, with $188.7 million withdrawn, surpassing the previous record of $72.7 million set on Dec. 20, according to CoinGlass data. Over a four-day period, U.S.-based spot Bitcoin ETFs collectively recorded $1.52 billion in net outflows, including $338.4 million on Dec. 24 alone.
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Major ETFs, including Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF, contributed to the exodus, losing $83.2 million and $75 million, respectively. The Bitwise Bitcoin ETF was the only fund to record inflows, with $8.5 million on Christmas Eve. Despite this downturn, Bitcoin ETFs remain dominant, having surpassed U.S. gold ETFs in assets under management (AUM) on Dec. 16, reaching $129 billion.
Ether ETFs Show Resilience
In contrast to Bitcoin’s struggles, Ether ETFs continued to attract investors, with two consecutive days of inflows leading up to Christmas. U.S. spot Ether ETFs saw $53.6 million added on Dec. 24, following a $130.8 million inflow the previous day.
Although Ether ETFs had a slow start after their July launch, they have gained momentum since late November, enjoying an 18-day inflow streak that ended on Dec. 18. Analysts suggest Ether may outperform Bitcoin in January 2025, with the ETH/BTC ratio currently at 0.035, according to TradingView data.
Conclusion
The holiday period highlighted contrasting fortunes for Bitcoin and Ether ETFs. While Bitcoin ETFs faced a challenging period of record outflows, Ether ETFs demonstrated resilience with consistent inflows. As the market evolves, investor sentiment appears to be diversifying, setting the stage for intriguing developments in the cryptocurrency ETF space in the coming months.
