BlackRock's Bitcoin ETF is going through a tumultuous period marked by unprecedented capital outflows. The asset management giant recorded its largest single-day outflow on December 24, part of a downtrend that saw U.S. Bitcoin ETFs collectively lose more than $1.5 billion in just four days.
A record hemorrhage for Bitcoin ETFs
On Christmas Eve, BlackRock's iShares Bitcoin Trust ETF (IBIT) saw a record outflow of $188.7 million, according to CoinGlass data. This figure far exceeds the previous record of $72.7 million set a few days earlier.
This black day was accompanied by significant withdrawals from other major managers, including Fidelity with $83.2 million and ARK 21Shares with $75 million in outflows.
Only Bitwise managed to maintain a positive flow with a modest entry of $8.5 million. In total, the twelve American spot Bitcoin ETFs saw $338.4 million evaporate on the day of December 24 alone.
These moves are part of a broader context of investor disengagement, with cumulative net outflows reaching $1.52 billion since December 19. This trend contrasts sharply with the initial enthusiasm that accompanied the launch of these products last January.
Ethereum ETFs Resist the Trend
As bitcoin faces selling pressure, Ethereum ETFs are showing remarkable resilience. Ether-based funds recorded two consecutive days of positive inflows, with $53.6 million on December 24, following an injection of $130.8 million the day before. This performance is all the more notable as these products, launched in July, had a relatively modest start compared to their bitcoin counterparts.
The positive momentum of Ethereum ETFs is accompanied by an increase in the price of Ether, which is now trading around $3,490, while bitcoin maintains its position around $98,000. Some analysts even anticipate Ether outperforming bitcoin for January 2025, with the ETH/BTC ratio currently stable at 0.035.
Despite this turbulence, US Bitcoin ETFs maintain their market dominance, having surpassed gold ETFs in terms of assets under management for the first time on December 16, with more than $129 billion in assets under management. This historic achievement highlights the growing maturity of the crypto market, even in the face of periods of increased volatility, as evidenced by a stable end of the year for Bitcoin despite a slight correction.
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