U.S. Spot Bitcoin ETFs See Major Net Inflows Following Holiday Slump
In a remarkable shift from a recent downturn, U.S. spot Bitcoin ETFs experienced net inflows of $475.2 million on December 26, 2023, as reported by CoinGlass. This positive trend followed a streak of four consecutive trading days characterized by outflows amounting to $1.52 billion.
Leading Contributors to Recent Inflows
The inflows were predominantly driven by several key ETFs:
- Fidelity Wise Origin Bitcoin Fund: Attracting $254.4 million in investments.
- ARK 21Shares Bitcoin ETF: Garnering $186.9 million.
- BlackRock’s iShares Bitcoin Trust ETF (IBIT): Pulling in $56.5 million.
Other ETFs that recorded smaller inflows include Grayscale’s mini Bitcoin ETF and VanEck’s ETF, with inflows of $7.2 million and $2.7 million, respectively.
Bitcoin Price Movement
Interestingly, this influx of investments comes amidst a slight decline in Bitcoin's price, having dipped by 2.2% in the last day—falling from approximately $98,000 to just above $96,000. Nonetheless, Bitcoin ETFs continue to showcase resilience, accumulating total net inflows of $35.9 billion and achieving assets under management (AUM) of $111.9 billion since their inception in January.
Ether ETFs Display Continued Strength
In addition to Bitcoin, Ether ETFs are also thriving, with net inflows of $117.2 million recorded on December 26. This marks their third consecutive day of positive inflows, reflecting growing investor confidence in Ethereum. Fidelity led the inflow with $83 million, while BlackRock’s iShares Ethereum Trust ETF and Grayscale’s ETH trust followed with $28.2 million and $6 million, respectively.
Ether ETF Year-to-Date Performance
Ether ETFs have managed to accumulate $2.63 billion in net inflows this year, with AUM approaching $12 billion.
Looking Ahead: Crypto ETF Market Outlook
With merely three trading days remaining in 2024, the crypto ETF market is indicative of the increasing interest and optimism among investors as we approach 2025. Despite facing short-term price volatility, analysts maintain a bullish outlook on the potential long-term effects of these funds in facilitating institutional adoption of cryptocurrency assets, as highlighted by Cointelegraph.
Final Thoughts
The recent trends in Bitcoin and Ether ETFs underline a resilience in investor sentiment, suggesting that the crypto market is poised for further developments as it heads into the new year. The sector’s growth not only symbolizes a rebound but also emphasizes the increasing acceptance of digital currencies among institutional investors.
Leave a comment
All comments are moderated before being published.
This site is protected by hCaptcha and the hCaptcha Privacy Policy and Terms of Service apply.