The netflows of Bitcoin ETFs in the US have been negative over the past three days running up to Christmas. Furthermore, these exchange-traded funds (ETFs) temporarily dampened Bitcoin’s upward momentum by setting a new record for single-day outflows. Nonetheless, there was a net inflow of capital into Ethereum ETFs in the US, which is a positive indicator.
$1.2B Bitcoin ETF Outflow Raises Concerns
The last three trading days saw a nearly $1.2 billion drain from Bitcoin ETFs, according to data from SoSoValue. The most notable outflow since the approval of Bitcoin ETFs occurred on December 19, when $680 million was removed. We must wonder if this massive withdrawal is only about making a profit or if there is a deeper structural change in the allocation of money at work. At this point, profit-taking is the most plausible reason.
But it would be wise to keep an eye on market sentiment and institutional actions to be sure. Antonio Zennaro, an investor, commented. This came after 15 days of positive netflows for Bitcoin ETFs, increasing their total net assets to $121 billion from $100 billion. Bitcoin ETF Outflows, Total net assets fell to $105 billion, nevertheless, due in part to the recent three-day outflow.
Grayscale Sells BTC Bitcoin ETFs Surpass Gold
BTC 1,870 were sold by Grayscale’s GBTC in the last three trading days, making it a significant contribution to the outflows. Compared to the purchasing activity of BlackRock’s IBIT at the same time, this was a huge deal. The optimism of Bitcoin investors has not wavered, even if the netflows have been negative for the past three days.
In terms of assets under management (AUM), Bitcoin ETFs overtook gold ETFs in December, indicating that institutional and individual investors alike are becoming more confident in digital assets.
Ethereum ETFs Gain vs Bitcoin ETFs Lose
Oddly enough, Ethereum ETFs witnessed inflows during the December 23 trading session, whilst Bitcoin ETFs saw outflows. Ethereum ETFs received more than $130 million in investments, whilst Bitcoin ETFs lost $226 million. Beyond that, over a million Ethereum tokens are now held by BlackRock’s Ethereum exchange-traded fund. Following Ethereum’s price decline from $4,100 to approximately $3,100.
December, many investors are hoping this indicates positive momentum for altcoins and Ethereum in general. More than 1,000,000,000 ETH are now held by BlackRock’s Ethereum ETF. We have never seen an altcoin season indicator like this before, especially when combined with the fact that ETH is currently consolidating below its all-time high. Speculator Dan Gambardello offered his thoughts.
Summary
Bitcoin ETFs in the US lost $1.2 billion in the three trading days before Christmas, halting Bitcoin’s rise. Grayscale’s 1,870 BTC sale fueled this outflow. Bitcoin ETFs outperformed gold ETFs in assets under management in December, indicating increased confidence in digital assets. Bitcoin ETF Outflows, BlackRock’s Ethereum ETF now holds over 1 million ETH after $130 million in inflows. Investors are watching Ethereum’s good trend after its December price drop from $4,100 to $3,100.
FAQs
What was the impact of these Bitcoin ETF outflows on its momentum?
The outflows temporarily slowed Bitcoin's upward momentum, despite previous positive netflows.
How did Ethereum ETFs perform during this period?
Ethereum ETFs experienced inflows of over $130 million while Bitcoin ETFs saw a $226 million loss.
What notable change occurred with Bitcoin ETFs in December?
Bitcoin ETFs surpassed gold ETFs in assets under management, showing growing confidence in digital assets.
What is the significance of BlackRock's Ethereum ETF holdings?
BlackRock now holds over 1 million Ethereum tokens in its ETF, indicating strong investor interest in Ethereum.
