Highlights
Bitcoin ETFs
- Net Outflows: $426 million recorded on December 30.
- Grayscale’s GBTC: Experienced daily outflows of $135 million.
- Cumulative Net Inflows: $35.24 billion, equating to approximately 5.69% of Bitcoin’s total market cap.
Ethereum ETFs
- Net Outflows: First decline of $55.41 million after consecutive inflows.
- Grayscale’s ETHE: Reported outflows of $17.363 million.
- Cumulative Net Inflows: $2.62 billion, while total net assets stand at $12.27 billion, or 3% of Ethereum’s market cap.
Ethereum ETFs: Reversing Trends
- Outflows: Experienced a drastic net outflow after several days of steady inflows.
- Underlying Causes:
- Macro uncertainty continues as Federal Reserve policies tighten, reducing market liquidity.
- Diverging projections, with optimism from institutional investors contrasting bearish predictions like those of Markus Thielen, who anticipates sluggish ETH performance in 2025.
- Performance Metrics:
- Total value traded: $336.27 million on December 30.
- Major outflows reported by Grayscale, BlackRock, and Bitwise.
Bitcoin ETFs: Continued Retreat
- Steep Decline: Significant withdrawals for the second consecutive day.
- Market Context:
- Coincides with Bitcoin’s first weekly decline since Trump’s election victory.
- Federal Reserve policies fuel cooler investor sentiment due to rising interest rates and inflation fears.
- Key Numbers:
- Total net redemptions: $21.487 billion.
- Total net assets: $106.24 billion.
Bitcoin vs. Ethereum ETFs: Divergent Futures
Bitcoin ETFs
- Macro adoption remains bullish in the long term, though short-term caution persists.
- Analysts warn that further macro pressures may lead to additional investor flight.
Ethereum ETFs
- Bulls remain optimistic about future inflows.
- Concerns linger over liquidity and overall market capitalization growth, affecting Ethereum’s adoption trajectory.
Volatility and Macro Economy Headwinds
- Volatility: Outflows highlight the inherent unpredictability of cryptocurrency ETFs.
- Influences:
- Interest rates, inflation, and monetary policies shape investor decisions.
- Institutional adoption and technological advancements may drive recovery.
- Liquidity Trends: Market appetite and liquidity will play a key role in determining the performance of Spot Bitcoin ETFs and Spot Ethereum ETFs.
Conclusion
The significant outflows in Bitcoin and Ethereum Spot ETFs reflect growing caution among investors as 2024 comes to a close. While institutional interest in cryptocurrency remains robust, macroeconomic pressures and evolving market sentiment create an atmosphere of uncertainty. Investors are advised to maintain a balanced approach, monitor liquidity trends, and stay informed on ETF performance and regulatory developments to navigate the volatility and chart a clearer trajectory for 2025.
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