Bitcoin ETF Outflows Hit $1.5B as course retreat

On December 27, 2024By Littum

Bitcoin exchange-traded funds faced more than $1.5 billion in net outflows over the past four days, even as institutional interest in cryptocurrency remains strong.

This shift in fund flows comes as bitcoin is currently trading around $96,000, marking an 11% decline from its all-time high of $108,268 set earlier this month, according to data from CoinMarketCap.

For investors, these outflows signal caution as bitcoin posts its first weekly decline since Trump’s election victory, while the Federal Reserve’s latest messages on inflation and interest rates have reshaped market expectations.

Despite the broader market retreat, institutional adoption continues to grow. Micro strategy announced a $561 million purchase of 5,262 bitcoins purchased in December at an average price of $106,662, according to a archiving with the Securities and Exchange Commission. The company now has 444,262 bitcoins, purchased at a total cost of about $27.7 billion.

BlackRock’s iShares Bitcoin Trust (IBIT) saw its largest one-day outflow of $188.7 million on Tuesday, bringing its four-day total withdrawal to $229.7 million, according to data from the British asset manager Farside Investors

The Fidelity Wise Origin Bitcoin Fund (FBTC) led the four-day outflows with $509.6 million in withdrawals, while ARK 21Shares Bitcoin ETF (ARKB) lost $286.1 million in the period, according to Farside.

Grayscale’s Bitcoin Trust ETF (GBTC) and Bitcoin Mini Trust (BTC)meanwhile, recorded combined outflows of $372.1 million over the four days, Farside reports.

The Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin ETF (HODL) saw outflows of $58.8 million and $13.5 million, respectively, over the four-day period based on Farside’s data.

The Franklin Bitcoin ETF (EZBC) stood out as the only fund to record positive flows, adding $5.6 million during the period, according to Farside.

Year-to-date flows show IBIT leading with $37.1 billion in inflows, while FBTC has attracted $11.7 billion, according to Farside data. GBTC has seen $21.3 billion in outflows since converting from a trust structure.