As a seasoned researcher with a keen eye for market trends and a soft spot for cryptocurrencies, I find myself intrigued by this latest development in the world of Bitcoin and Ethereum exchange-traded funds (ETFs). The rollercoaster ride that these digital assets have been on lately is nothing short of exhilarating.
In the U.S., exchange-traded funds linked to Bitcoin experienced a third consecutive day of withdrawals, as Bitcoin had difficulty regaining its $100K level after the Federal Reserve announced a more aggressive interest rate reduction strategy.
Based on SosSoValue’s data, Bitcoin ETFs experienced an inflow of approximately $226.56 million on December 23, ending a three-day streak where more than $1.18 billion had been withdrawn from these funds.
Mostly, it was Fidelity’s FBTC that experienced withdrawals, totaling approximately $145.97 million. Not far behind, Grayscale’s GBTC also saw outflows amounting to around $38.39 million.
Other BTC ETFs that recorded a negative flow are as follows:
- Invesco Galaxy’s BTCO, $25.56 million.
- Bitwise’s BITB, $23.75 million.
- ARK and 21Shares’s ARKB, $15.75 million.
- Grayscale Bitcoin Mini Trust, $6.18 million.
- VanEck’s HODL, $2.62 million.
Despite most Bitcoin ETFs experiencing outflows, BlackRock’s Innovative Advisor IBD Treasury (IBIT) saw a positive trend, attracting inflows of approximately $31.66 million. This brings its total net inflows since launch to an impressive $37.36 billion.
On December 23rd, the daily trading volume for these investment products was $3.52 billion, which was less than the $4.09 billion recorded the day before. Meanwhile, total net inflows into Bitcoin Exchange-Traded Funds (ETFs) amounted to $35.83 billion during that period.
As an analyst, I observed a substantial withdrawal of funds on Monday, which can be attributed to Bitcoin’s (BTC) 4% drop from its intraday peak of $96,386 to approximately $92,600 today. This decline appears to have been triggered by the hawkish stance adopted in the Federal Reserve’s recent interest rate decision.
On Wednesday, the Federal Reserve carried out its third sequential reduction of interest rates and suggested a more moderate tempo of monetary relaxation next year to control inflation. This action dampened the overly optimistic anticipation in the cryptocurrency market, which had been stimulated by Trump’s pledge for crypto-favorable legislation and his advocacy for creating a national Bitcoin reserve.
Over the last seven days, the most significant cryptocurrency globally experienced a decrease of approximately 11.9%. At the moment of reporting, it was being traded for roughly $94,436 per unit.
Ethereum ETFs bounce back
On December 23, there was a total of $130.76 million invested in Ethereum ETFs, marking an end to a two-day trend where $135.4 million had been withdrawn from these funds. BlackRock’s ETHA took the lead with inflows of approximately $89.51 million, while Fidleity’s EFTH received around $46.37 million in new investments.
Biwise’s ETHW saw a relatively small investment of approximately $963,720 today, whereas Grayscale Ethereum Mini Trust was an exception, reporting an outflow of around $6,090,000.
The remaining ETH ETFs remained neutral on the day.
Currently, Ethereum (ETH) is trading up by 3.3% compared to the last 24 hours, with each coin being transacted for approximately $3,412.
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2024-12-24 10:29