Cryptocurrency

Bitcoin ETFs experience surprise inflow following four-day market decline.

United States Bitcoin Exchange-Traded Funds (ETFs) See Net Inflows After Christmas

The United States Bitcoin exchange-traded funds (ETFs) saw significant net inflows on December 26, a welcome change from the four-trading day run of outflows totaling more than $1.5 billion.

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Net Inflows Total Over $475 Million

According to CoinGlass, the 11 ETFs together saw net inflows of $475.2 million on December 26, marking a notable shift in investor sentiment after a period of significant withdrawals from these funds. The largest contributor to this influx was the Fidelity Wise Origin Bitcoin Fund, which received $254.4 million in flows.

ARK 21Shares Bitcoin ETF and BlackRock’s iShares Bitcoin Trust ETF Also Experience Significant Inflows

The ARK 21Shares Bitcoin ETF followed closely behind with inflows of $186.9 million, while BlackRock’s iShares Bitcoin Trust ETF (IBIT) took in a more modest but still substantial $56.5 million.

Grayscale and VanEck’s Mini Bitcoin ETFs Also Experience Net Inflows

Other notable contributors to the net inflows on December 26 included Grayscale’s mini Bitcoin ETF, which saw inflows of $7.2 million, and VanEck’s ETF with $2.7 million in flows.

United States Markets Closed for Christmas Day

The influx of funds into these ETFs follows four consecutive trading days of total net outflows from the same funds between December 19 and 24, which totaled $1.52 billion. This period of outflows coincided with a decline in Bitcoin prices over the last day, falling by around 2.2% to just above $96,000 at the time of writing.

Historical Perspective: Total Net Inflows Since Launch

Considering the historical performance of these ETFs since their launch in January, it is clear that they have been attractive investment options for many investors. According to CoinGlass data, total net inflows into Bitcoin ETFs since their inception stand at an impressive $35.9 billion, with a total assets under management (AUM) of around $111.9 billion.

Ether ETFs Experience Third Consecutive Day of Joint Net Inflows

Interestingly, Ether ETFs have also seen their third consecutive trading day of joint net inflows totaling $301.6 million over the same period. On December 26 alone, these funds saw a combined influx of $117.2 million, led again by Fidelity’s ETH ETF with $83 million in flows.

Fidelity Wise Origin Ethereum Fund and iShares Ethereum Trust ETF Experience Notable Inflows

BlackRock’s iShares Ethereum Trust ETF followed up closely behind with inflows of $28.2 million, while Grayscale’s Ether trust saw a more modest but still significant influx of $6 million.

Historical Perspective: Total Net Inflows for Ether ETFs

In terms of historical performance, the total net inflows into Ether ETFs over the year stand at around $2.63 billion with an AUM of approximately $12 billion. This performance reflects the growing interest in Ethereum and its underlying technology, as well as the expanding use cases for ETH.

Cryptocurrency Prices and Market Sentiment

The current market sentiment is closely tied to cryptocurrency prices. Bitcoin has dropped by 2.2% over the last day, falling from around $98,000 to just above $96,000 at the time of writing. In contrast, Ethereum has lagged behind its counterpart, failing to crack a new all-time high unlike Bitcoin.

Cryptocurrency ETFs as Investment Options

Unlike the cryptocurrencies they track, cryptocurrency ETFs have only three trading days left this year — December 27, 30, and 31. Given their historical performance, these funds have proven themselves to be attractive investment options for many investors.

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