The BlackRock Bitcoin ETF is facing a challenging period with significant capital outflows that are raising eyebrows. Recently, this asset management leader reported its largest daily outflow on December 24, contributing to a staggering total of over $1.5 billion in losses across American Bitcoin ETFs in just four days.
Record outflows from Bitcoin ETFs
On Christmas Eve, BlackRock’s iShares Bitcoin Trust (IBIT) witnessed an alarming outflow of $188.7 million, shattering the prior record of $72.7 million that occurred just days before. Other major investment firms like Fidelity and ARK 21Shares also experienced considerable withdrawals, with $83.2 million and $75 million leaving their funds, respectively. Bitwise was the only exception, managing to attract a modest inflow of $8.5 million.
Within just a single day on December 24, the total evaporation of assets from the twelve American spot Bitcoin ETFs amounted to $338.4 million. These substantial outflows highlight a significant trend of investor disengagement, with a cumulative net loss of $1.52 billion since December 19. This decline sharply contrasts with the earlier excitement that surrounded the launch of these products back in January.
While Bitcoin struggles under selling pressure, Ethereum ETFs are displaying unexpected strength. Notably, these funds saw two days of positive inflows, totaling $53.6 million on December 24, following a solid $130.8 million injection the day before. Remarkably, these Ethereum products, introduced in July, started off modestly compared to Bitcoin ETFs but are now showcasing impressive growth.
The surge in Ethereum ETF performance coincides with an uptick in Ether’s price, currently hovering around $3,490, while Bitcoin remains steady at approximately $98,000. Some analysts even predict that Ethereum may outshine Bitcoin come January 2025, with the ETH/BTC ratio currently stable at 0.035.
Despite these turbulent times, American Bitcoin ETFs continue to hold a competitive edge, having surpassed gold ETFs in assets under management for the first time on December 16, boasting over $129 billion in assets. This remarkable milestone reflects a maturing crypto market, even amidst rising volatility and uncertainty.
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