United States Bitcoin Exchange-Traded Funds (ETFs) See Net Inflows After Four-Traing Day Run of Outflows
In a surprising turn of events, the United States’ Bitcoin exchange-traded funds (ETFs) witnessed significant net inflows on December 26th, following a four-trading day streak of outflows totaling over $1.5 billion.
A Brief Respite from the Outflows
The 11 ETFs in question collectively experienced net inflows of $475.2 million on December 26th. This marked a welcome respite from the previous four trading days, which had seen cumulative net outflows exceeding $1.52 billion between December 19th and 24th.
Fidelity’s Wise Origin Bitcoin Fund Leads the Charge
The Fidelity Wise Origin Bitcoin Fund took center stage with an impressive $254.4 million worth of flows into its coffers on December 26th, according to CoinGlass data. This significant influx of capital underscores the growing interest in Bitcoin ETFs and their increasing acceptance within the mainstream financial sector.
ARK 21Shares Bitcoin ETF Follows Closely
In second place, the ARK 21Shares Bitcoin ETF reported net inflows of $186.9 million on December 26th. This robust performance was followed by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which attracted a substantial $56.5 million in new investments.
Grayscale and VanEck’s Modest but Noteworthy Inflows
While the Grayscale mini Bitcoin ETF and VanEck’s ETF reported more modest inflows of $7.2 million and $2.7 million, respectively, these amounts still contribute to a significant increase in overall assets under management (AUM) for both funds.
Historical Context: The Prolonged Run of Outflows
The recent outflows from Bitcoin ETFs follow an extended period of redemptions, which began on December 19th and culminated with the largest-ever single-day net outflow of $188.7 million recorded by IBIT on December 24th.
Market Volatility and Crypto Price Movements
Coinciding with these market dynamics is a notable decline in Bitcoin’s price over the past day, having slipped from around $98,000 to just above $96,000. This fluctuation comes as Ethereum’s (ETH) ETH ETFs have seen their third consecutive trading day of net inflows totaling $301.6 million.
Ethereum’s Inflows: A Counterbalance to Bitcoin’s Decline
The December 26th net inflows into ETH funds, led by Fidelity’s ETF with a substantial $83 million worth of investments, demonstrate the resilience and allure of Ethereum as an investment opportunity. BlackRock’s iShares Ethereum Trust ETF followed closely with $28.2 million in new capital, while Grayscale’s ETH trust took in a modest $6 million.
A Year in Review: Bitcoin and Ethereum ETFs
The inaugural year for these cryptocurrency-focused ETFs has witnessed significant milestones, including total net inflows of $35.9 billion into the 11 Bitcoin funds and an AUM of around $111.9 billion as of December 26th. In contrast, Ether ETFs have seen a cumulative net inflow of $2.63 billion over the year, with an AUM of approximately $12 billion.
A Glance Ahead: Final Days of Trading in 2024
With only three trading days left for the crypto funds in 2024 (December 27th, 30th, and 31st), investors are keeping a close eye on their performance. As we reflect on this remarkable first year for Bitcoin and Ethereum ETFs, one question lingers: what’s next for these rapidly evolving investment options?
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