Bitcoin ETFs Experience Record $680 Million Single Day Outflow

Bitcoin ETFs Experience Record $680 Million Single Day Outflow

The broader cryptocurrency market’s recent downturn has extended its impact to exchange-traded funds (ETFs), with U.S. spot Bitcoin ETFs witnessing a record $680 million in outflows on December 19. This marked the largest single-day outflow for Bitcoin ETFs and the first net outflow in 15 consecutive days.

Biggest Outflow Day for Bitcoin ETFs

Leading the exodus was Fidelity’s FBTC, which saw $208.55 million exit its fund. Other notable outflows included $188.6 million from Grayscale’s BTC and GBTC funds, $87.86 million from Bitwise’s BITB, and $43.61 million from additional funds.

Despite the trend, some funds managed to stay resilient. Wisdomtree’s BTCW recorded a modest $2.05 million inflow, while Blackrock’s IBIT ETF reported no inflows or outflows for the day.

Ethereum ETFs Mirror the Trend

The outflow trend wasn’t limited to Bitcoin ETFs. Ethereum spot ETFs also faced net outflows totaling $60.47 million, breaking an 18-day inflow streak. Grayscale’s ETHE and ETH funds led the decline, with outflows of $58.13 million and $3.18 million respectively. Bitwise’s ETHW followed suit, losing $6.78 million, while Invesco’s QETH registered $2.36 million in outflows.

However, there were signs of optimism within Ethereum ETFs. Fidelity’s FETH and Vaneck’s ETHV funds bucked the trend, bringing in $5.05 million and $4.94 million in inflows, respectively.

Market Sentiment and Outlook

The significant outflows from Bitcoin and Ethereum ETFs indicate a conservative shift in investor behavior, likely driven by recent market volatility. While the selloff signals caution, the long-term outlook for crypto ETFs remains positive. Analysts predict that investors will return once the market stabilizes, with the potential for renewed inflows as confidence rebuilds.

As the crypto market continues to evolve, ETF performance remains a key indicator of broader investor sentiment and market trends. Stay updated on the latest developments in cryptocurrency investment and ETFs as the industry navigates these turbulent times.