As a seasoned analyst with over two decades of experience in the financial markets, I have seen countless bull and bear cycles, and the current correction in the crypto market is no exception. The recent outflows from Bitcoin ETFs, while concerning for some, should not be alarming to long-term investors.
Investors affiliated with institutions are showing signs of apprehension, as the downturn in the cryptocurrency market becomes more pronounced, and U.S.-based Spot Bitcoin ETFs have halted a streak of daily inflows that lasted for 15 consecutive trading days.
Over the last three business days, these eleven Bitcoin exchange-traded funds collectively lost approximately $1.17 billion. The price of this digital asset dropped by over 14% since it reached its record peak a week prior.
On December 23rd, a grand total of $226.5 million flowed out of various investment funds, with Fidelity being the largest contributor at $146 million. Other funds such as Bitwise, Ark 21Shares, Invesco, VanEck, and Grayscale also experienced outflows that day, but BlackRock defied the trend by receiving an inflow of $31.7 million.
Bitcoin ETF Daily Flow
Blackrock US$ Flow: 31.7 million
For all the data and disclaimers visit:
— Farside Investors (@FarsideUK) December 24, 2024
Bitcoin ETFs Cooling
Nevertheless, the total inflow to date for these institutional investment products is $35.8 billion, highlighting the huge demand for Bitcoin-based ETPs.
As a researcher, on December 24th, I observed that the BlackRock’s iShares Bitcoin ETF, a product from the renowned investment firm Swan, has climbed into the top 35 of all Exchange-Traded Funds (ETFs) ever launched. Currently, it manages an impressive $53.3 billion in assets under its management.
NEW: BlackRock’s $IBIT #Bitcoin ETF is now in the top 35 of all ETFs EVER with $53.3B AUM. Out of 3,900+ ETFs. In less than a year. BULLISH
— Swan (@Swan) December 23, 2024
According to CoinShares’ recent analysis, the period from December 19th to 20th witnessed a significant withdrawal of over $1 billion from cryptocurrency investment funds.
Nate Geraci, the president of ETF Store, found the funny aspect in the market dip that occurred last week due to the actions of the Federal Reserve.
— Nate Geraci (@NateGeraci) December 23, 2024
On December 23rd, Ethereum ETFs defied the general trend of withdrawals by attracting a total of $130.8 million, contrasting with two straight days of outflows in the previous week as per initial data from Farside Investors.
Once more, BlackRock took the top spot with a $89.5 million investment in ETHA, and Fidelity came in second with a $46.4 million inflow. The remaining seven funds saw minimal activity.
BTC Price Outlook
Today’s Bitcoin (BTC) decline has intensified to approximately 14.5%, as the cryptocurrency dipped by an additional 1.5% throughout the day. This drop led to a new intraday and monthly low of $92,442 during early Asian trading on Tuesday morning.
At the moment of writing, Bitcoin had regained the $94,000 mark, suggesting that the downward trend might be easing off.
At the point of this writing, various altcoins were showing positive performance. Binance Coin (BNB), Avalanche (AVAX), Chainlink (LINK), Sui (SUI), and Hedera (HBAR) all saw gains exceeding 4%.
Read More
- “I’m a little irritated by him.” George Clooney criticized Quentin Tarantino after allegedly being insulted by him
- South Korea Delays Corporate Crypto Account Decision Amid Regulatory Overhaul
- George Folsey Jr., Editor and Producer on John Landis Movies, Dies at 84
- Why Sona is the Most Misunderstood Champion in League of Legends
- ‘Wicked’ Gets Digital Release Date, With Three Hours of Bonus Content Including Singalong Version
- Destiny 2: When Subclass Boredom Strikes – A Colorful Cry for Help
- An American Guide to Robbie Williams
- Not only Fantastic Four is coming to Marvel Rivals. Devs nerf Jeff’s ultimate
- Leaks Suggest Blade is Coming to Marvel Rivals Soon
- Why Warwick in League of Legends is the Ultimate Laugh Factory
2024-12-24 10:00