The cryptocurrency market experienced a significant capital flight, with spot Bitcoin ETFs recording a net outflow of $338.38 million on December 24, 2024. Over the past four days, total losses in Bitcoin-focused ETFs have exceeded $1.5 billion. Meanwhile, Ethereum ETFs are showing signs of recovery, with inflows reversing the trend.
Bitcoin ETFs Face Continued Outflows
On December 24, three major spot Bitcoin ETFs recorded capital outflows, including the iShares Bitcoin Trust, the largest fund by assets under management. Only one fund reported inflows, highlighting a challenging period for Bitcoin-focused investment products.
This marks the fourth consecutive trading day with negative performance in the sector. The cumulative outflow over the past four days has reached $1.52 billion, reminiscent of a similar downturn observed in late August and early September 2024.
Despite the recent losses, the total assets under management (AUM) in spot Bitcoin ETFs stood at $109.41 billion as of December 24. While this is below the December 16 peak of $121.7 billion, it remains higher than levels observed at the beginning of the month.
Ethereum ETFs Show Signs of Reversal
In contrast, the Ethereum ETF sector appears to be rebounding, marking its second consecutive day of net inflows. Three funds reported positive capital movements by the close of trading on December 24, while five others showed no changes in their asset flows.
Hong Kong ETF Sector Also Under Pressure
The Hong Kong sector of spot Bitcoin ETFs also recorded outflows, with a net daily loss of 34.96 BTC. This marks the fourth straight day of negative performance for these products. Meanwhile, spot Ethereum ETFs in the region reported neither inflows nor outflows.
Investor Implications
The contrasting performance of Bitcoin and Ethereum ETFs reflects a broader shift in market sentiment. While Bitcoin ETFs face sustained selling pressure, Ethereum products are beginning to regain investor confidence. Analysts suggest that Bitcoin’s recent price corrections may offer a buying opportunity, though caution is warranted given the ongoing market volatility.
This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.
