On December 26, U.S. Bitcoin exchange-traded funds (ETFs) ended a four-day period of outflows with a significant net inflow of $475.2 million. This influx marks a renewed interest from investors in the market.
A Reversal After Record Outflows
The net inflows followed substantial outflows of $1.52 billion between December 19 and December 24. Notably, BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced a record outflow of $188.7 million on December 24, contributing heavily to the overall losses.
Fidelity and ARK Lead the Way
Fidelity’s Wise Origin Bitcoin Fund led the recovery with $254.4 million in inflows. ARK 21Shares’ Bitcoin ETF also saw significant inflows of $186.9 million, contributing to the overall recovery of Bitcoin ETFs.
Smaller Contributions from Other Funds
Other funds also saw positive movements. BlackRock’s IBIT added $56.5 million, while Grayscale’s mini Bitcoin ETF and VanEck’s ETF recorded smaller gains of $7.2 million and $2.7 million, respectively.
Bitcoin Price Declines Amid ETF Gains
Despite the resurgence in Bitcoin ETF inflows, Bitcoin’s price fell by 2.2% over the last 24 hours, dipping below $97,000. This decline occurred as Bitcoin ETFs regained momentum.
Ether ETFs Maintain Positive Momentum
Ether ETFs also saw positive movement, marking their third consecutive day of net inflows. Over the three-day period, Ether ETFs recorded a total of $301.6 million in inflows. On December 26, the inflows reached $117.2 million, driven by Fidelity’s ETF with $83 million, followed by BlackRock’s iShares Ethereum Trust ETF with $28.2 million and Grayscale’s ETH trust with $6 million.
Ether’s Struggles Despite Inflows
However, Ether’s price lagged behind Bitcoin, dropping by 1.7% to under $3,400. It has yet to reach a new all-time high, despite the positive inflows into Ether ETFs.
Strong Year for Bitcoin ETFs
Bitcoin ETFs have performed strongly in their inaugural year, recording net inflows of $35.9 billion. Total assets under management (AUM) for Bitcoin ETFs reached $111.9 billion by December 26, reflecting investor confidence.
Ether ETFs See Growth, But Are Still Behind Bitcoin
Ether ETFs, while newer to the market, have attracted $2.63 billion in net inflows and an AUM of $12 billion. The inflows on December 26 for Ether ETFs were $112.2 million, indicating steady growth.
New ETF Proposals in the Market
The recent inflows also coincide with new ETF proposals. Strive, an asset management firm founded by Vivek Ramaswamy, has filed with U.S. regulators to launch an ETF focused on Bitcoin-linked convertible bonds. Additionally, Bitwise has proposed the Bitcoin Standard Corporations ETF, which will invest in publicly traded companies holding significant Bitcoin reserves.
Digital Asset Investment Products Experience Mixed Results
Digital asset investment products saw a total of $308 million in net inflows last week. However, these gains were offset by a significant single-day outflow of $576 million on December 19. The week ended with a net outflow of $1 billion, mainly driven by market reactions to the Federal Reserve’s hawkish dot plot announcement.
Bitcoin and Ethereum Resilience Amid Market Volatility
Despite the broader market’s volatility, Bitcoin showed resilience with net inflows of $375 million for the week. Ethereum continued its positive momentum with $51 million in inflows, while Solana saw outflows of $8.7 million. Altcoins like XRP, Horizen, and Polkadot recorded smaller but notable inflows.
Conclusion
While Bitcoin and Ether ETFs have shown resilience and growth, the broader market remains volatile, influenced by Federal Reserve announcements and investor sentiment. Despite recent challenges, Bitcoin and Ethereum continue to attract strong interest, signaling confidence in the long-term potential of these digital assets.
The post U.S. Bitcoin ETFs Break $1.5 Billion Outflow Streak with Post-Christmas Inflows appeared first on Cryptonews.
