As an analyst with over a decade of experience in the financial markets, I have witnessed numerous market cycles and trends, and I can confidently say that the recent outflows from Bitcoin and Ethereum ETFs are a cause for concern but not panic.
The significant outflows seen on December 30th, coupled with the failure of Bitcoin to maintain its key support level at $95,000, has increased the risk of further price drops. However, it is essential to remember that the crypto market is highly volatile, and such downturns are a normal part of its cycle.
Moreover, the total trading volume for these investment products remains high, indicating strong investor interest in digital assets. Additionally, the record inflows over the month into Ethereum ETFs highlight growing institutional demand for Ethereum, which could potentially offset any losses in Bitcoin.
In my experience, it is crucial to remain objective and analyze market trends carefully before making investment decisions. It’s also essential to have a long-term perspective, as short-term volatility can be misleading.
Lastly, I always like to remind myself of the old saying, “Buy the rumor, sell the news.” In this case, the announcement of Bitcoin ETFs in the US may have led to significant inflows into these funds earlier in the month, with investors buying the rumor. Now that the news has become reality, we might be seeing a sell-off as investors take profits or sell the news.
In any case, I will continue to monitor the market closely and adjust my investment strategy accordingly. But remember, always do your own research and never invest more than you can afford to lose!
Joke: Did you hear about the new Bitcoin ATM in town? It only dispenses advice, it’s a “crypt-o-mat.
U.S.-listed Bitcoin ETFs saw further withdrawals on December 30th, as the price of Bitcoin stayed under $93,000.
Based on data from SoSoValue, Bitcoin ETFs experienced a total of $426.13 million in withdrawals on December 30, marking the second straight day of outflows. The previous day had seen $723.8 million withdrawn from these funds.
On a particular day, the most money was taken out of Fidelity’s FBTC fund, amounting to $154.64 million, and Grayscale’s GBTC fund came in second with withdrawals totaling $134.5 million.
Over the specified period, substantial withdrawals were observed from BlackRock’s IBIT, Grayscale Bitcoin Mini Trust, Bitwise’s BITB, and ARK 21Shares’s ARKB, with amounts totaling $36.52 million, $31.73 million, $31.37 million, and $26.4 million being taken out of these funds respectively.
On that particular day, Valkyrie’s Bitcoin Product Reported Redemption (BRRR) recorded an exit of approximately $10.96 million. Notably, no Bitcoin Exchange-Traded Funds (ETFs) received any investments on the same day.
On December 30th, the combined daily trade value for all 12 investment items amounted to approximately $3.14 billion, which was slightly greater than the $3.02 billion recorded on the preceding day.
On Monday, the large withdrawals occurred because Bitcoin (BTC) couldn’t hold onto its crucial support level at $95,000, a point identified by analysts. This breakdown made it more likely that the price could continue falling, possibly reaching as low as $60,000.
At the moment of reporting, the most significant cryptocurrency worldwide is trading at a 1% decrease with each coin being valued at approximately $92,458.
Ether ETFs also begin outflows
On December 30, there was an outflow of $55.41 million from the Ethereum funds with the nine spot, marking the end of a four-day influx period that had previously added approximately $349.1 million to the funds.
On that particular day, Fidelity’s FETH recorded the highest outflows amounting to $20.41 million. Meanwhile, Grayscale’s ETHE and mini Ethereum Trust experienced outflows worth $17.36 million and $13.75 million respectively. Franklin Templeton’s EZET saw a more modest daily outflow of $3.88 million.
On December 30th, I observed a total trading volume of $336.26 million for these investment vehicles, which was slightly higher compared to the $324.32 million recorded on the previous trading day. Over time since their launch, these ETFs have accumulated net inflows amounting to $2.62 billion.
In December, the Ethereum ETFs hit a fresh monthly record, outpacing previous cumulative net inflows of more than $2 billion. This amount is almost twice what was recorded in November, which stood at approximately $1.1 billion, as reported by data from Farside Investors.
Despite an impressive surge in inflows this past month, Ether (ETH) has yet to escape its ongoing downward trend. As the biggest alternative coin, it registered a decrease of approximately 9%, currently exchanging hands for around $3,353 as we speak.
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2024-12-31 10:28