Weekly Inflows and Outflows Highlight Diverging Trends for BTC and ETH ETFs

Weekly Inflows and Outflows Highlight Diverging Trends for BTC and ETH ETFs

The final week of 2024 showcased contrasting trends in the cryptocurrency ETF space, with Bitcoin ETFs seeing significant outflows, while Ethereum ETFs enjoyed robust inflows.

Bitcoin ETF Outflows Mark the End of 2024

The 12 U.S. spot bitcoin ETFs collectively recorded a net outflow of $387.45 million during the week of December 23 to December 27. The decline coincided with bitcoin's price dipping below the $95,000 mark, a notable psychological threshold.

• Key Outflows by Fund:
  • Fidelity’s FBTC: $182.96 million outflow
  • Bitwise’s BITB: $59.54 million outflow
  • Invesco’s BTCO: $39.71 million outflow
  • BlackRock’s IBIT: $21.11 million outflow
  • Ark 21Shares’ ARKB: $16.42 million outflow

Despite the outflows, bitcoin ETFs ended the week with a combined net asset value (NAV) of $106.68 billion.

Ethereum ETFs Surge with Strong Inflows

In contrast, Ethereum ETFs recorded a collective weekly net inflow of $349 million, signaling strong investor confidence.

• Key Inflows by Fund:
  • BlackRock’s ETHA: $181.82 million inflow
  • Fidelity’s FETH: $160.33 million inflow
  • Bitwise’s ETHW: $7.15 million inflow

These inflows brought the total NAV of Ethereum ETFs to $12.11 billion, representing approximately 3% of Ethereum’s total market capitalization.

Interpreting the Trends

The divergent fortunes of Bitcoin and Ethereum ETFs suggest a shift in investor sentiment:

• Bitcoin Outflows: May indicate profit-taking as BTC's price approached a local peak.
• Ethereum Inflows: Could reflect anticipation of an altcoin rally or increased confidence in Ethereum's long-term potential.

Institutional and retail investors may be repositioning their portfolios in preparation for broader market trends as we head into 2025.