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Coinpaprika 2024-12-25 12:22:00

Bitcoin ETFs Face $1.2B Outflows, Ethereum Sees $130M Inflows

Bitcoin ETFs have faced significant outflows, with nearly $1.2 billion withdrawn over three days , including a record-breaking $680 million in a single day on December 19. This marks the largest single-day outflow since Bitcoin ETFs were launched. Analysts suggest profit-taking as the primary reason, although some question if this signals a deeper structural shift in investor sentiment. Before this downturn, Bitcoin ETFs enjoyed 15 consecutive days of positive net inflows, driving their total assets from $100 billion to $121 billion. However, recent outflows have pushed total net assets down to $105 billion. Data from SoSoValue indicates Grayscale’s GBTC fund was the main contributor, selling 1,870 BTC in just three days. In contrast, BlackRock’s IBIT fund continued buying, but its activity wasn't enough to offset the sell pressure. Despite this negative trend, confidence in Bitcoin remains strong. In December, Bitcoin ETFs surpassed gold ETFs in total assets under management (AUM), underlining growing trust in digital assets among institutional and retail investors. However, these recent outflows have temporarily stalled Bitcoin’s upward price trajectory. While Bitcoin struggled, Ethereum ETFs recorded inflows exceeding $130 million , with a notable surge during the December 23 trading session. On the same day, Bitcoin ETFs saw $226 million in outflows. BlackRock's Ethereum ETF has now accumulated over 1 million ETH, signaling increasing institutional interest in the asset. Investor Dan Gambardello remarked that Ethereum’s current accumulation phase, combined with BlackRock’s growing holdings, hints at a potential altcoin market revival . This comes as Ethereum’s price recently corrected from $4,100 to around $3,100. Many investors view this as a sign of a brewing altcoin season. Market experts suggest that while profit-taking explains much of the Bitcoin ETF outflows, the growing interest in Ethereum could indicate shifting investment preferences. BlackRock's substantial ETH holdings , coupled with Ethereum's price consolidation below its all-time high, may create momentum for further inflows into Ethereum ETFs. In summary, Bitcoin ETFs are facing heavy profit-taking pressure, while Ethereum ETFs are experiencing increased institutional attention. Investors are now closely watching whether this trend is temporary or marks the start of a larger shift in digital asset investment strategies. Both Bitcoin and Ethereum continue to dominate institutional portfolios, and their performance in the coming weeks will likely set the tone for the broader cryptocurrency market.

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