Bitcoin ETFs Record Outflows of $582M While Ethereum Funds Lose $159M

TLDR

Bitcoin ETFs saw net inflows of $582M on Wednesday – the highest ever Ethereum ETFs experienced $159.3M in outflows Fidelity's FBTC dropped by $258M Bitcoin price fell to $92,500 December 2024 ETF's 51,500 BTC is down 8 compared to 150 BTC.

US-listed cryptocurrency ETFs experienced massive withdrawals on Wednesday, with Bitcoin and Ethereum funds seeing more than $740 million in outflows amid growing macroeconomic uncertainty.

Eleven Bitcoin ETFs recorded net outflows of $582 million, marking the second largest one-day outflow since their inception, according to data from SoSoValue. This figure is close to the previous record of $680 million set on December 19.

Fidelity's FBTC emerged as the worst-hit fund, with investors pulling out $258 million, setting a new record for the product. BlackRock's IBIT also saw notable outflows, losing $124 million over the same period.

The Ethereum ETF market experienced similar pressure, with funds showing a $159.3 million outflow. This represents the largest withdrawal since July 26, when these funds saw $162 million in redemptions.

The price of Bitcoin reflected these market movements, dropping to $92,500 at one point. This decline comes after reaching a high of $102,000 on January 7, representing a 6.21% drop in 24 hours.

Recent Federal Reserve minutes have highlighted concerns about various policies contributing to inflation, contributing to bond market volatility and pressuring riskier assets like cryptocurrencies.

Looking back to December 2024, the Bitcoin ETF showed strong buying activity, buying 51,500 BTC during the month. This amount is significantly higher than the 13,850 BTC produced during the same period, highlighting the growing influence of ETF products on market volatility.

The cryptocurrency market performed strongly in 2024, with Bitcoin up 116 percent year-over-year. This growth has occurred alongside the proliferation of institutional investment vehicles.

According to market data, Bitcoin and Ethereum both delivered similar returns from the bottom of their cycles, each showing approximately 4.0x returns. These parallel performance metrics suggest that the two assets have maintained their appeal to investors.

Despite the recent flows, ETF trading volumes remain strong, indicating continued market participation even during disruptive activity.

December 2024 data highlighted the growing impact of ETF products on cryptocurrency markets, with purchase volume four times greater than the new Bitcoin product.