United States Bitcoin Exchange-Traded Funds (ETFs) See Net Inflows After Christmas
In a surprising turn of events, United States Bitcoin exchange-traded funds (ETFs) witnessed net inflows on December 26, which marked the end of a four-day streak of outflows totaling over $1.5 billion.
A Brief Respite from Outflows
The 11 ETFs combined saw an influx of $475.2 million on December 26, with Fidelity’s Wise Origin Bitcoin Fund leading the charge at $254.4 million (per CoinGlass). The ARK 21Shares Bitcoin ETF followed closely behind with inflows of $186.9 million, while BlackRock’s iShares Bitcoin Trust ETF (IBIT) took in $56.5 million.
Grayscale’s mini Bitcoin ETF and VanEck’s ETF also saw more modest inflows of $7.2 million and $2.7 million, respectively. The sudden reversal in fortunes comes after US markets closed on December 25 for Christmas Day, following four straight trading days of net outflows from the ETFs between December 19 and 24.
A Brief History of Bitcoin ETF Inflows
Since their launch in January, all Bitcoin ETF inflows have been tracked by CoinGlass. The data reveals a remarkable surge in investment interest over the past year. Here’s a brief breakdown:
- Total net inflows since launch: $35.9 billion
- Total assets under management (AUM): $111.9 billion
Ether ETF Inflows Take Center Stage
CoinGlass also shows that Ether ETH ETFs have seen their third consecutive trading day of joint net inflows totaling $301.6 million over the same period. On December 26, ETH funds net took in $117.2 million, with Fidelity’s ETF leading the charge at $83 million worth of net inflows.
BlackRock’s iShares Ethereum Trust ETF followed up with $28.2 million, while Grayscale’s ETH trust took in $6 million. Ether has been lagging behind Bitcoin over the past two months, failing to crack a new all-time high despite its significant market presence.
Market Sentiment and Outlook
It remains to be seen how these developments will impact the overall crypto market sentiment and performance in 2024. As investors continue to grapple with the rapidly changing landscape of digital assets, one thing is clear: the demand for exposure to cryptocurrencies through ETFs is on the rise.
Key Takeaways
- United States Bitcoin ETFs saw net inflows of $475.2 million on December 26
- Fidelity’s Wise Origin Bitcoin Fund led the charge at $254.4 million (per CoinGlass)
- ARK 21Shares Bitcoin ETF followed closely behind with inflows of $186.9 million
- BlackRock’s iShares Bitcoin Trust ETF (IBIT) took in $56.5 million
- Grayscale’s mini Bitcoin ETF and VanEck’s ETF saw more modest inflows of $7.2 million and $2.7 million, respectively
- Ether ETH ETFs have seen their third consecutive trading day of joint net inflows totaling $301.6 million over the same period
Historical Inflows for Bitcoin ETFs
| Date | Net Flows (USD) |
| — | — |
| January 2023 – December 2023 | $35.9 billion |
Historical Assets Under Management (AUM) for Bitcoin ETFs
| Date | AUM (USD) |
| — | — |
| January 2023 – December 2023 | $111.9 billion |
Historical Inflows for Ether ETFs
| Date | Net Flows (USD) |
| — | — |
| January 2023 – December 2023 | $2.63 billion |
Historical Assets Under Management (AUM) for Ether ETFs
| Date | AUM (USD) |
| — | — |
| January 2023 – December 2023 | $12 billion |
Conclusion
The sudden reversal in fortunes for Bitcoin and Ether ETF inflows is a testament to the rapidly evolving crypto market landscape. As investors continue to grapple with the complexities of digital assets, one thing is clear: demand for exposure to cryptocurrencies through ETFs is on the rise.
As we head into the final stretch of 2023, it will be fascinating to see how these developments impact market sentiment and performance in 2024. Will the trend of increasing inflows continue? Only time will tell.
