- Bitcoin ETFs Saw Outflows of $568.8 Million, Marking the Second Highest Daily Net Withdrawal
- Ethereum ETFs ended 2024 on a resilient note with $35 billion inflows despite recent outflows
Bitcoin [BTC] Spot ETFs witnessed a significant shift in investor sentiment after three days of consistent inflows as massive outflows totaling $568.8 million were recorded in a single day, according to Investors on the other side.
Bitcoin ETF update
Leading the decline was Fidelity Wise Origin Bitcoin Fund, which saw its largest ever single-day outflow of $258.7 million, accounting for 45% of total net outflows.
Ark 21Shares’ ARKB followed closely with withdrawals of $148.3 million, while BlackRock’s IBIT ETF also saw significant outflows of $124 million.
While several other ETFs reported relatively smaller outflows, some recorded no activity, reflecting a stark difference in market behavior.
The recent outflows from Bitcoin ETFs marked the second-highest daily net withdrawal since their inception, trailing just $100 million behind the record outflow of $671.9 million on December 19.
This wave of outflows coincided with a significant drop in Bitcoin’s price, with the cryptocurrency falling below $95,000 shortly after crossing the $100,000 mark on January 7.
Analysts weigh in
Ryan Lee, lead analyst at Bitget Research, said about this massive price crash in a publication:
“Bitcoin’s dip is mainly driven by strong US economic data that points to possible interest rate increases.”
Interestingly, the Crypto Fear & Greed Index, a key barometer of market sentiment for Bitcoin and other cryptocurrencies, also shifted from ‘Extreme Greed’ to ‘Greed’ in the past month, with the score dropping from 78 to 69.
This decline is a sign of muted optimism among market participants amid recent price swings.
Despite the index signaling strong positive sentiment, some traders have been cautious about drawing definitive conclusions. They believe that Bitcoin’s price volatility may not yet provide a clear direction for the market’s next move.
Noting the same in a January 9 X-post: Daan Crypto Trades said,
“This doesn’t say much, especially since December has broken the trend and the start of the year is generally very choppy.”
Ethereum ETF to surpass Bitcoin ETF?
While Bitcoin ETFs dominate market activity, Ethereum [ETH] ETFs are steadily closing the gap, underlined by their impressive $35 billion inflows by 2024, despite recent outflow of $159.4 million.
Crypto analyst Lark Davis’ prediction that ETFs may hold 10-20% of Bitcoin supply during peak cycles is fueling concerns about a supply shortage, but Ethereum’s resilience and growing investor confidence indicate a shift.
Therefore, if these trends continue, 2025 could herald a pivotal moment, potentially positioning Ethereum ETFs as leaders in the crypto investment landscape.