Bitcoin and Ethereum Spot ETF Records Major Outflows at Month-End

31-12-2024 By: Deep Upadhyay
Bitcoin and Ethereum

Spot Bitcoin and Ethereum ETFs: Major Outflows and Market Sentiment

Spot ETFs experienced significant outflows on December 30, highlighting shifting sentiment in the cryptocurrency market. Both Bitcoin ETFs and Ethereum ETFs faced substantial withdrawals, signaling caution among investors amid evolving market dynamics and macroeconomic factors.

Ethereum ETFs Face First Net Outflow After Days of Inflows

The spot Ethereum ETF recorded a net outflow of $55.41 million on December 30, marking the first outflow after four consecutive days of inflows. Grayscale's ETF (ETHE) alone saw a net outflow of $17.3633 million. Despite a cumulative total net inflow of $2.62 billion and total net assets valued at $12.27 billion (accounting for 3% of Ethereum’s market cap), the trend signals increased uncertainty.

Source: SoSoValue

Although spot Ethereum ETF surge was witnessed earlier, many providers, including Grayscale, BlackRock, and Bitwise, reported massive outflows. Optimism surrounding spot ETH ETF was fueled by bullish projections from notable investors. However, contrasting views have emerged, with Markus Thielen of 10x Research predicting sluggish performance for ETH in 2025 due to "hawkish" macro policies and weakening liquidity.

As of December 30, the total value traded for Ethereum ETFs stood at $336.27 million. Investors are now closely watching the Spot Ethereum ETF price and broader trends in the Ethereum ETF list to gauge the next steps in market sentiment.

Bitcoin ETFs Experience Steep Outflows Amid Market Retreat

The spot Bitcoin ETF suffered a dramatic net outflow of $426 million on December 30, continuing a two-day streak of withdrawals. Grayscale's GBTC alone reported a $135 million daily outflow, contributing to a staggering historical net outflow of $21.487 billion. Despite these challenges, Bitcoin ETFs boast cumulative net inflows of $35.24 billion and total net assets of $106.24 billion, representing 5.69% of Bitcoin’s market cap.

Source: SoSoValue

Market sentiment around Bitcoin Spot ETF has been shaken, with Bitcoin posting its first weekly decline since Trump’s election victory. Spot ETF news attributes this to the Federal Reserve’s hawkish stance on inflation and interest rates. Institutional adoption of Bitcoin ETFs remains robust, yet the current outflows reflect cautious positioning by investors.

Bitcoin vs Ethereum ETF: Diverging Outlooks for 2025

As Bitcoin vs Ethereum ETFs continues to dominate discussions, divergent opinions on their futures are taking shape. While some foresee a Spot Ethereum ETF inflow resurgence driven by technological adoption, others remain skeptical of both Bitcoin and Ethereum’s potential to revisit historical highs under tighter monetary policies.

The recent ETF outflows underscore the need for investors to navigate the volatility of the cryptocurrency market with a balanced approach. As the macroeconomic landscape evolves, the performance of Spot Bitcoin ETF and Spot Ethereum ETF will likely hinge on liquidity trends and institutional appetite.

Also read: TapCoin Daily Combo 01 January 2025: Play To Earn Rewards
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