TLDR
Bitcoin ETFs saw $582M net outflows on Wednesday – second highest ever
Ethereum ETFs experienced $159.3M in outflows
Fidelity’s FBTC led outflows with $258M withdrawn
Bitcoin price dropped to $92,500 amid macro concerns
December 2024 saw ETFs purchase 51,500 BTC vs 13,850 BTC mined
U.S.-listed cryptocurrency ETFs experienced substantial withdrawals on Wednesday, with Bitcoin and Ethereum funds seeing combined outflows of over $740 million amid growing macroeconomic uncertainties.
Data from SoSoValue shows that eleven Bitcoin ETFs recorded a net outflow of $582 million, marking the second-largest single-day withdrawal since their launch. This figure approaches the previous record of $680 million set on December 19.
Fidelity’s FBTC emerged as the most affected fund, with investors pulling out $258 million, setting a new record for the product. BlackRock’s IBIT also saw notable outflows, losing $124 million during the same period.
The Ethereum ETF market faced similar pressure, with funds experiencing outflows of $159.3 million. This represents the largest withdrawal since July 26, when these funds saw $162 million in redemptions.
The price of Bitcoin reflected these market movements, dropping to $92,500 at one point. This decline came after reaching a peak of $102,000 on January 7, representing a 6.21% decrease in 24 hours.
Recent Federal Reserve minutes revealed concerns about the inflationary impact of various policies, contributing to increased bond market volatility and putting pressure on risk assets like cryptocurrencies.
Looking back at December 2024, Bitcoin ETFs demonstrated strong buying activity, purchasing 51,500 BTC during the month. This amount substantially exceeded the 13,850 BTC mined during the same period, highlighting the growing influence of ETF products on market dynamics.
The cryptocurrency market showed robust performance throughout 2024, with Bitcoin posting a 116% increase over the year. This growth occurred alongside the expansion of institutional investment vehicles.
Market data indicates that Bitcoin and Ethereum have both delivered similar returns from their cycle bottoms, with each showing approximately 4.0x returns. These parallel performance metrics suggest both assets have maintained their appeal to investors.
ETF trading volumes remain robust despite the recent outflows, indicating continued market engagement even during periods of withdrawal activity.
December 2024’s data highlighted the growing impact of ETF products on cryptocurrency markets, with purchase volumes exceeding new Bitcoin production by a factor of nearly four.
