Bitcoin’s Plunge Below $93k Triggers Sustained ETF Exodus

Amidst a Tough Market Condition, Spot Bitcoin ETFs in the U.S. Experience Third Consecutive Day of Withdrawals Following Federal Reserve's Hawkish Rate Cut

"Bitcoin's Plunge Below $93k Triggers Sustained ETF Exodus"

Key Points

Spot Bitcoin exchange-traded funds (ETFs) in the United States witnessed a third consecutive day of capital withdrawal. This occurred as Bitcoin struggled to rebound to the $100K mark in the wake of the Federal Reserve’s hawkish rate cut.

Data from SosSoValue reveals that the 12 spot Bitcoin ETFs registered $226.56 million in inflows on Dec. 23, extending their outflow streak to three days. During this period, over $1.18 billion exited the funds.

Outflows from Bitcoin ETFs

The largest outflows were observed from Fidelity’s FBTC, which reported outflows of $145.97 million. Grayscale’s GBTC followed with $38.39 million withdrawn from the fund. Other Bitcoin ETFs that saw a negative flow include Invesco Galaxy’s BTCO, Bitwise’s BITB, ARK and 21Shares’s ARKB, Grayscale Bitcoin Mini Trust, and VanEck’s HODL.

BlackRock’s IBIT was the only Bitcoin ETF that resisted the trend, with inflows of $31.66 million. This raised its total net flows since its launch to $37.36 billion. The daily trading volume for these investment products was $3.52 billion on Dec. 23, lower than the $4.09 billion recorded the previous day. The total net inflows into the Bitcoin ETFs stood at $35.83 billion at the time of writing.

The significant outflows recorded on Monday followed Bitcoin’s 4% decline from an intraday high of $96,386 to an intraday low of around $92,600. This was driven by a hawkish stance accompanying the Federal Reserve’s latest interest rate decision.

Ethereum ETFs Experience Inflows

In contrast to the outflows from Bitcoin ETFs, the nine spot Ethereum ETFs recorded $130.76 million inflows on Dec. 23. This broke a two-day outflow streak that saw $135.4 million exit the funds. BlackRock’s ETHA led the inflows with $89.51 million, followed by Fidelity’s EFTH with $46.37 million.

Bitwise’s ETHW reported a more modest inflow of $963.72k, while Grayscale Ethereum Mini Trust was an outlier, recording an outflow of $6.09 million. The remaining Ethereum ETFs remained neutral on the day.

At the time of writing, Ethereum had gained 3.3% over the past 24 hours, exchanging hands at $3,412 per coin. Meanwhile, Bitcoin, the world’s largest crypto asset, had fallen 11.9% over the past week, trading at $94,436 per coin.

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