In December 2024, BlackRock's Bitcoin (BTC)-based exchange-traded funds (ETFs) saw new record net outflows, while Ethereum (ETH) ETFs attracted over $2.5 billion in inflows sharp. This trend marks a notable shift in institutional investor preferences.
New record outflows for BlackRock's Bitcoin ETF
BlackRock's iShares Bitcoin Trust ETF (IBIT) saw its largest outflow on record, reaching $188.7 million on December 24, 2024. This outflow surpassed the previous record of $73 million set just days earlier. Bitcoin ETFs in the United States collectively suffered net outflows of $1.5 billion over four consecutive days, peaking at $338.4 million on Christmas Day.
In contrast, Ethereum ETFs showed positive momentum with continued net inflows. Ether ETFs saw inflows of $53.6 million on December 24, following an inflow of $130.8 million the day before. Since their launch in July, Ether ETFs have gradually gained traction, despite a slower start compared to Bitcoin ETFs launched in January.
A change in dynamism for ethereum?
This divergence in flows of funds reflects a growing interest in Ethereum, supported by several factors. First, ETH has outperformed BTC in spot and derivatives markets since November 2024. Second, the growing activity of the Ethereum network, particularly through the proliferation of artificial intelligence agents, has increased investor confidence in the long-term potential of ETH.
Analysts predict that ethereum could continue to outperform bitcoin in January 2025, supported by its relative strength against BTC. The ETH/BTC ratio, currently at 0.035, indicates possible outperformance for ETH at the start of the year.
In sum, record net outflows from BlackRock's Bitcoin ETFs and significant net inflows from Ethereum ETFs in December 2024 signal a shift in institutional investor preferences. If this trend continues, Ethereum could definitely outperform Bitcoin in the ETF market in 2025.
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