U.S. Bitcoin ETFs Break $1.5 Billion Outflow Streak with Post-Christmas Inflows

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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December 26, 2024

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U.S. Bitcoin exchange-traded funds (ETFs) ended a four-day streak of outflows with a net inflow of $475.2 million on December 26, signaling renewed investor interest.

The inflows followed outflows totaling $1.52 billion between December 19 and December 24, which included a record $188.7 million single-day outflow for BlackRock’s iShares Bitcoin Trust ETF (IBIT) on December 24.

Fidelity’s Wise Origin Bitcoin Fund led the recovery with $254.4 million in inflows, while ARK 21Shares’ Bitcoin ETF added $186.9 million.

More Funds See Inflows

BlackRock’s IBIT contributed $56.5 million, with Grayscale’s mini Bitcoin ETF and VanEck’s ETF recording smaller gains of $7.2 million and $2.7 million, respectively.

The resurgence comes as Bitcoin’s price slipped 2.2% over the past 24 hours, falling below $97,000.

While Bitcoin ETFs regained momentum, Ether ETFs marked their third consecutive day of net inflows, totaling $301.6 million over that period.

On December 26, Ether ETFs saw $117.2 million in net inflows, led by Fidelity’s ETF with $83 million, followed by BlackRock’s iShares Ethereum Trust ETF at $28.2 million and Grayscale’s ETH trust with $6 million.

Ether, however, lagged behind Bitcoin, dropping 1.7% to under $3,400 and failing to reach a new all-time high in recent months.

In their inaugural year, Bitcoin ETFs have seen significant activity, with total net inflows reaching $35.9 billion and total assets under management (AUM) at $111.9 billion.

Ether ETFs, while newer to the market, have recorded $2.63 billion in net inflows and an AUM of $12 billion.

Notably, the inflows came as Strive, an asset management firm founded by Vivek Ramaswamy, has filed with U.S. regulators to launch an ETF aimed at investing in Bitcoin-linked convertible bonds.

Bitwise has also filed to launch the Bitcoin Standard Corporations ETF, which will focus on publicly traded companies holding significant Bitcoin reserves.

Digital Asset Investment Products Saw $308M Inflows Last Week

Digital asset investment products experienced net inflows of $308 million last week, though this figure conceals a significant single-day outflow of $576 million on December 19.

The week ended with a total outflow of $1 billion over its final two days, triggered largely by market reactions to the Federal Reserve’s hawkish dot plot announcement.

These movements led to a $17.7 billion reduction in total assets under management (AuM) for digital asset ETPs, marking a 0.37% decline in AuM, according to a report from CoinShares.

While concerning, this outflow is modest compared to the largest single-day outflow of 2.3% in mid-2022, which followed an FOMC interest rate hike.

Bitcoin saw resilience with net inflows of $375 million for the week, while multi-asset investment products bore the brunt of the losses, shedding $121 million.

Ethereum continued its streak with $51 million in inflows, offset by Solana’s $8.7 million outflows.

Altcoins such as XRP, Horizen, and Polkadot saw smaller but notable inflows.