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BlackRock’s Bitcoin ETF is going through a tumultuous period marked by unprecedented capital outflows. The asset management giant posted its biggest one-day outflow on Dec. 24, part of a downward trend that has seen U.S. bitcoin ETFs lose more than $1.5 billion combined in just four days.
Record bleeding for Bitcoin ETFs
On Christmas Day, BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw record outflows of $188.7 million, according to CoinGlass data. This figure far surpasses the previous record of $72.7 million set a few days earlier.
The black day was accompanied by significant withdrawals from other major managers, notably Fidelity with $83.2 million and ARK 21Shares with outflows of $75 million.
Only Bitwise managed to maintain a positive flow with a modest entry of $8.5 million. A total of $338.4 million evaporated across twelve US spot bitcoin ETFs on December 24th alone.
The moves are part of a broader context of investor drift, with cumulative net outflows reaching $1.52 billion since Dec. 19. This trend is in stark contrast to the initial enthusiasm that accompanied the launch of these products last January.
Ethereum ETF Resist the Trend
While Bitcoin faces selling pressure, Ethereum ETFs are showing remarkable resilience. Ether-based funds saw 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 all the more remarkable given that these products, launched in July, had a relatively humble beginning compared to their Bitcoin counterparts.
The positive momentum of the Ethereum ETF is accompanied by an increase in the price of Ether, which is now trading around $3,490, while Bitcoin maintains its position around $98,000. Some analysts even expect Ether to surpass Bitcoin in January 2025, with the ETH/BTC ratio currently stable at 0.035.
Despite this turmoil, U.S. Bitcoin ETFs maintain their market dominance, surpassing gold ETFs for the first time in terms of assets under management on December 16, with more than $129 billion in assets under management. This historic achievement highlights the growing maturity of the crypto market, despite a period of increased volatility, as evidenced by a stable year-end for Bitcoin despite a slight correction.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.