Bitcoin ETFs Bleed $226M While Ethereum Funds Feast on $130M Windfall

Holiday Havoc: Bitcoin ETFs Lose While Ethereum Funds Attract Inflows

In the lead-up to Christmas Eve, U.S. spot bitcoin exchange-traded funds (ETFs) faced significant outflows, shedding $226.56 million on December 23. Meanwhile, Ethereum ETFs enjoyed a surge of positive inflows, attracting $130.76 million as investors demonstrated contrasting sentiment toward these leading cryptocurrencies.

Bitcoin ETFs Face $226 Million Outflows

The holiday season added jitters to an already fragile crypto market, leading to substantial outflows from bitcoin ETFs. Among the 12 spot bitcoin ETFs, Fidelity’s FBTC bore the brunt of the losses, with $145.97 million withdrawn.

Other notable outflows included:

• Grayscale’s GBTC: $38.39 million
• Invesco’s BTCO: $25.56 million
• Bitwise’s BITB: $23.75 million
• Ark Invest’s and 21Shares’ ARKB: $15.75 million
• Grayscale’s Bitcoin Mini Trust: $6.18 million
• Vaneck’s HODL: $2.62 million

BlackRock’s IBIT managed to buck the trend, gaining $31.66 million, but it wasn’t enough to offset losses across other funds. Despite the setbacks, bitcoin ETFs still hold a cumulative net inflow of $35.83 billion for 2024 and $105.08 billion in BTC reserves as of Monday.

Ethereum ETFs Reap $130 Million in Positive Inflows

In stark contrast, Ethereum ETFs enjoyed a day of inflows, signaling bullish sentiment for the second-largest cryptocurrency by market cap.

Key contributors to the $130.76 million inflow include:

• BlackRock’s ETHA: $89.51 million
• Fidelity’s FETH: $46.37 million
• Bitwise’s ETHW: $963,720

Grayscale’s Ethereum Mini Trust was the only Ethereum fund to experience outflows, losing $6.09 million.

Ethereum ETFs now boast $12.05 billion in ether reserves, representing 2.94% of Ethereum’s total market value. Since July 2024, these funds have accumulated a net inflow of $2.46 billion.

What’s Driving the Trend?

The disparity between Bitcoin and Ethereum ETF performance highlights shifting investor priorities:

• Bitcoin’s Struggles: Persistent market uncertainty and recent losses across major funds may have caused investors to pull back.
• Ethereum’s Growth Potential: Increased optimism around Ethereum’s ecosystem and utility could be driving positive sentiment.

Sosovalue.com reported that $3.52 billion in bitcoin ETFs and $494.25 million in Ethereum ETFs were traded on Monday. These figures underscore a busy trading day despite the holiday lull, with Ethereum capturing the spotlight.

Conclusion

The contrasting fortunes of Bitcoin and Ethereum ETFs in the days before Christmas reflect the evolving dynamics of the cryptocurrency market. As Bitcoin struggles with outflows, Ethereum’s steady inflows may signal renewed confidence in its future potential. Investors will be watching closely as 2024 concludes, eager to see how these trends influence the broader crypto landscape in the new year.