Bitcoin ETFs Witness Unexpected Inflow After 4-Day Market Bleed Following Christmas Holiday Period
United States Bitcoin Exchange-Traded Funds (ETFs) See Net Inflows After Christmas
After four consecutive trading days of net outflows totaling over $1.5 billion, the 11 United States Bitcoin exchange-traded funds (ETFs) saw a significant turnaround on December 26th, with net inflows amounting to $475.2 million.
Leading the Charge: Fidelity Wise Origin Bitcoin Fund
The Fidelity Wise Origin Bitcoin Fund took the lead in terms of net inflows, with an impressive $254.4 million worth of flows into the fund on December 26th. This marked a significant reversal from the previous four trading days, which saw a combined total of $1.52 billion in net outflows.
ARK 21Shares Bitcoin ETF and BlackRock’s iShares Bitcoin Trust ETF Follow Suit
The ARK 21Shares Bitcoin ETF and BlackRock’s iShares Bitcoin Trust ETF (IBIT) also experienced notable inflows on December 26th, with $186.9 million and $56.5 million respectively. While these figures are lower than those seen in the Fidelity Wise Origin Bitcoin Fund, they still represent a significant reversal of the previous four trading days’ net outflows.
Grayscale’s Mini Bitcoin ETF and VanEck’s ETF See Modest Inflows
While Grayscale’s mini Bitcoin ETF and VanEck’s ETF saw more modest inflows of $7.2 million and $2.7 million, respectively, they still contribute to the overall trend of net inflows into the United States Bitcoin ETFs on December 26th.
Net Outflows in Previous Days
The four trading days preceding December 26th saw a combined total of $1.52 billion in net outflows from the United States Bitcoin ETFs. This decline was led by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which experienced its largest-ever single-day net outflow of $188.7 million on December 24th.
Record Net Outflow for IBIT
The record-breaking net outflow of $188.7 million seen in IBIT on December 24th more than doubled the previous record set on December 20th, which stood at $72.7 million. This significant reversal highlights the volatility and unpredictability of the cryptocurrency market.
Bitcoin Price Drop
The recent price drop of Bitcoin (BTC) has also contributed to the net outflows seen in the United States Bitcoin ETFs. Over the last day, the price of Bitcoin has fallen by 2.2% from around $98,000 to just above $96,000.
Ether ETFs Experience Net Inflows
In contrast to the United States Bitcoin ETFs, Ether ETFs have seen their third consecutive trading day of joint net inflows totaling $301.6 million over that period. The Ether funds on December 26th took in a combined total of $117.2 million, with Fidelity’s ETF leading the way with $83 million worth of net inflows.
Grayscale’s ETH Trust and iShares Ethereum Trust ETF Follow
BlackRock’s iShares Ethereum Trust ETF followed up with $28.2 million, while Grayscale’s ETH trust took in $6 million. These figures demonstrate a trend towards increased investment in Ether ETFs over the past few days.
Ether Price Drop
Like Bitcoin, the price of Ether (ETH) has also experienced a decline, falling by 1.7% over the past day to under $3,400.
Crypto ETFs and Their Performance Over Time
The United States Bitcoin ETFs have seen significant growth since their inception in January, with total net inflows amounting to $35.9 billion and total assets under management (AUM) of $111.9 billion. In contrast, the Ether ETFs have taken in a combined total of $2.63 billion in net inflows over the year, with an AUM of around $12 billion.
Limited Trading Days Left for 2023
With only three trading days left in 2023 (December 27th, 30th, and 31st), the performance of the United States Bitcoin and Ether ETFs will be closely watched by investors. Will the trend of net inflows continue, or will we see a return to net outflows?
Further Insights
For further insights into the cryptocurrency market and investment strategies, explore our article on "3 Coins Back from the Dead in 2024 That May Continue to Rise in ’25". This article provides critical analysis and guidance for investors looking to capitalize on potential opportunities.
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