Bitcoin ETFs Face Continued Outflows as BTC Struggles Below $88K

Summary: Bitcoin ETFs experienced $83.27 million in net outflows on December 26, marking five consecutive days of withdrawals as Bitcoin faced difficulty maintaining its value above $88,000. Notably, Fidelity's FBTC led these outflows.

Key Takeaways

Bitcoin ETFs saw $83.27 million in withdrawals, extending a five-day streak of outflows.
Fidelity's FBTC was the largest contributor with $74.38 million in outflows.
Grayscale's GBTC had $8.89 million in redemptions.
Total net assets managed by Bitcoin ETFs decreased to $113.83 billion.
Ethereum ETFs similarly experienced outflows, reaching $52.70 million on December 24.

Bitcoin ETFs Face Continued Outflows as BTC Struggles Below $88K

Ongoing Outflow Trends for Bitcoin ETFs

Bitcoin ETFs have been draining funds since December 18, starting with $161.32 million in outflows after a brief upswing on December 17 that saw $457.29 million in inflows. Following that, December 19 recorded $158.25 million in outflows, halting briefly over the weekend.

Trading resumed on December 22, resulting in $142.19 million in redemptions, which escalated to $188.64 million on December 23 and $175.29 million on December 24. The $83.27 million withdrawn on December 26 brought the total outflow over the five-day period to more than $750 million.

Trading volume fell sharply to $1.57 billion on December 24, down from $5.93 billion on December 17. The prolonged outflow trend indicates a decline in assets as Bitcoin has struggled to stay above the $90,000 mark. On December 26, Fidelity’s FBTC accounted for a significant portion of the outflows at $74.38 million, making up 89% of the total redemptions. Meanwhile, Grayscale's GBTC recorded withdrawals of $8.89 million, and other Bitcoin ETFs saw no activity.

Bitcoin ETF data

Ethereum ETFs Experience Similar Challenges

Ethereum ETFs were not immune to the selling pressure, facing outflows of $52.70 million on December 24, following $95.53 million in redemptions the previous day. There was a brief respite on December 22 with $84.59 million in inflows before the sell-off resumed.

As of December 24, total net assets for Ethereum products declined to $17.86 billion from $20.31 billion on December 11, with cumulative total net inflows across Ethereum ETFs remaining at $12.38 billion. Bitcoin's inability to surpass $90,000 has prompted profit-taking behaviors and position liquidations across both Bitcoin and Ethereum ETF markets.