- Bitcoin ETFs saw $568.8M outflows, marking the second-highest daily net withdrawal
- Ethereum ETFs resiliently closed 2024 with $35B inflows despite recent outflows
Investor attitude towards Bitcoin [BTC] Spot ETFs underwent a substantial change following three consecutive days of inflows. However, an enormous withdrawal amounting to $568.8 million was observed in just one day, as per data from Farside investors.
Bitcoin ETF update
The Fidelity Wise Origin Bitcoin Fund faced its biggest one-day withdrawal of approximately $258.7 million, making up around 45% of the total daily redemption.
21Shares’ ARKB fund and BlackRock’s IBIT ETF experienced significant withdrawals, with ARKB recording outflows amounting to approximately $148.3 million, and the IBIT ETF experiencing outflows totaling around $124 million.
While many other ETFs saw only modest withdrawals, some experienced no trading at all, indicating a significant split in the market’s actions.
In simpler terms, the latest withdrawals from the Bitcoin ETF came close to setting a new daily record for largest outflows, which was set on December 19th at $671.9 million, with today’s outflows only falling $100 million short.
During this period, Bitcoin’s price drop corresponded with the Bitcoin price falling below $95,000, happening just after it had reached and surpassed the $100,000 mark on January 7th.
Analysts weigh in
In response to the significant drop in prices, Ryan Lee, the Chief Analyst at Bitget Research, shared his insights with a media outlet.
The decline in Bitcoin’s value can mainly be attributed to the robust U.S. economic statistics suggesting a likelihood of increased interest rates.
It’s worth noting that the Crypto Fear & Greed Index, which reflects the general mood in Bitcoin and other digital currency markets, has moved from “Extreme Greed” to simply “Greed” over the past month. The score has decreased from 78 to 69.
This drop indicates a more cautious form of hopefulness among traders, given the recent ups and downs in the market.
Although the index indicates a very optimistic outlook among traders, some remain hesitant about making firm decisions based on this alone. They argue that Bitcoin’s volatile nature might still be too unpredictable to determine the market’s imminent direction.
Remarking on the same, in a 9 January X post, Daan Crypto Trades said,
There’s not a lot of information here so far, but it’s worth noting that December defied expectations and the beginning of the year tends to be quite volatile.
Ethereum ETF to surpass Bitcoin ETF?
Although Bitcoin ETFs have been leading market engagement, Ethereum ETFs have been consistently narrowing the difference, as evidenced by their significant $35 billion investment influx in 2024, even after experiencing a recent outflow of $159.4 million.
According to crypto expert Lark Davis, the possibility that ETFs could hold up to 20% of all Bitcoins during peak market periods raises worries about a potential shortage in Bitcoin supply. However, Ethereum’s robustness and increasing faith among investors suggest a trend towards something different.
If these trends continue, it’s possible that by 2025, Ethereum ETFs might occupy a significant role, even becoming pioneers, in the cryptocurrency investment sector.
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2025-01-10 11:03