Bitcoin ETFs Records Historic Outflow: What About Ethereum ETFs?

Bitcoin ETF Faces Historic Outflow; Ethereum ETF Also Dropped: Reason?

In a notable shift in the cryptocurrency investment landscape, both Spot Bitcoin ETF and Spot Ethereum ETF experienced their first net outflows on December 19. This development marks a significant change after a period of consistent inflows, signaling potential shifts in investor sentiment towards these digital assets.

Bitcoin Spot ETF Faces Historic Outflow

The Bitcoin Spot ETF saw a staggering net outflow of $680 million on December 19, the highest single-day outflow in its history and the first in 15 days. This outflow has affected the Bitcoin ETF landscape, bringing the cumulative total net inflow to $36.33 billion. 

Source: SoSoValue

The Spot Bitcoin ETF now holds $109.66 billion in total net assets, representing 5.74% of Bitcoin's market capitalization. Concurrently, Bitcoin's price declined by 4.20%, dropping from $101,180 to $96,886.52, amidst a market cap of $1.91 trillion and a 24-hour trading volume of $93.51 billion.

Ethereum Spot ETF Experiences First December Outflow

Similarly, the Ethereum Spot ETF recorded a net outflow of $60.47 million on the same day, marking its first outflow after 18 days of net inflows. 

Source: SoSoValue

The Ethereum ETF now boasts a cumulative total net inflow of $2.40 billion and maintains $11.98 billion in total net assets, which is 2.94% of Ethereum's market cap. Ethereum's price plummeted by 7.94%, falling from $3,666 to $3,376.24, with a market cap of $406.59 billion and a 24-hour trading volume of $57.24 billion.

Factors Influencing Spot ETF Outflows

The recent ETF outflows for both Bitcoin vs Ethereum ETF can be largely attributed to the US Federal Reserve's decision to implement a 25 basis point rate cut and its guidance for 2025. These economic indicators have dampened investor enthusiasm, leading to a decline in interest in both Spot Bitcoin ETF and Spot Ethereum ETF. The Spot ETH ETF and Spot Bitcoin ETF are now navigating a challenging environment as investors reassess their positions amidst changing financial policies.

As the Ethereum ETF list and Bitcoin vs Ethereum investment options continue to evolve, stakeholders are closely monitoring these trends. The Spot Ethereum ETF price and the previously observed Spot Ethereum ETF surge are now under scrutiny following the recent outflows. Investors and analysts alike will be watching how these Spot ETFs adapt to the current market dynamics and what this means for the future of cryptocurrency investments.