Spot Bitcoin ETFs See $355 Million Inflows, Ending 7-Day Withdrawal Streak – Is Liquidity Shifting?

Summary:
On December 30, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a significant turnaround, attracting $355 million in net inflows and concluding a week of continuous outflows. This surge followed a stretch of decreasing engagement from investors, primarily due to falling prices and reduced liquidity as the year came to a close.

Key Takeaways

Significant Recovery: Spot Bitcoin ETFs gained $355 million on December 30, ending a seven-day outflow period.
Leading Inflows: BlackRock’s iShares Bitcoin Trust was the top performer, attracting $143.75 million.
Monthly Performance: Despite the rebound, December recorded a net outflow of roughly $744 million for Bitcoin ETFs.
Market Stability: Bitcoin prices have stabilized around $88,800 after earlier volatility, while Ethereum ETFs have also shown solid inflows.

Spot Bitcoin ETFs Pull In $355M, Ending 7- Day Bleed — Is Liquidity Finally Turning?

Ending the Outflow Cycle

On December 30, U.S. spot Bitcoin ETFs marked a dramatic reversal by pulling in $355 million in net inflows, effectively ending a seven-day streak of withdrawals. This notable comeback represented the highest daily inflow since mid-December, following a nearly two-week period where ETF investors consistently pulled back due to softening prices and waning year-end liquidity.

According to data from Sosovalue, the resurgence was led by BlackRock’s iShares Bitcoin Trust, which received a healthy infusion of $143.75 million on that day.

BlackRock's Leading Inflows

Not far behind, ARK Invest and 21Shares’ ARKB fund attracted $109.56 million, while Fidelity’s Wise Origin Bitcoin Fund welcomed $78.59 million. Other smaller contributions came from Bitwise, VanEck, and Grayscale’s legacy Bitcoin Trust.

This turnaround followed a challenging period where Bitcoin ETFs experienced a total loss of about $1.12 billion over seven trading days. A standout moment during this downturn was the substantial $275.9 million outflow on December 26, the largest of the week.

December's Overall ETF Performance

Despite the positive inflow on December 30, the overall situation for spot Bitcoin ETFs in December remained challenging. The month concluded with a net outflow of approximately $744 million, extending the losses recorded in November, when over $3.4 billion were withdrawn.

The pressure was particularly evident from December 18 to December 29, with outflows recorded in seven of eight trading days, punctuated only by a single substantial inflow on December 17.

Flow Analysis

Weekly data reflects a similar narrative, with two weeks of significant losses leading up to the modest recovery in the last week of the month.

Despite the fluctuations, cumulative net inflows across U.S. spot Bitcoin ETFs remain high, totaling $56.96 billion and highlighting the substantial institutional interest developed earlier in the year. The total net assets held by these ETFs reached $114.44 billion by December 30, constituting about 6.52% of Bitcoin’s total market capitalization.

Alongside this rebound, trading volumes increased, with the total value exchanged through Bitcoin ETFs hitting $3.57 billion for the day. Flows continued to be predominantly channeled to the largest issuers, with BlackRock’s IBIT having cumulative net inflows of $62.19 billion and assets under management nearing $68 billion, approximately 3.9% of Bitcoin’s circulating supply.

Fidelity and ARK 21Shares followed, while Grayscale’s GBTC did not receive any new inflows, remaining significantly negative due to ongoing redemptions since its transition from a trust structure.

Price Movements and Ethereum ETF Activity

The change in ETF flows coincided with a period of price stabilization for Bitcoin, trading near $88,800 at the latest update. Although there was a slight daily increase, the price remained under its all-time high.

Bitcoin Price Action

In recent sessions, Bitcoin showed a sharp move towards the $90,000 mark, followed by a pullback to the mid-$86,000 range, where buying activity resumed, preventing further declines. Currently, the market has adopted a sideways movement, oscillating between $86,700 and $88,000 as traders evaluate their next steps.

In contrast, Ethereum spot ETFs exhibited steadier conditions. On December 30, ETH-linked ETFs recorded $67.84 million in net inflows, bringing cumulative inflows to $12.40 billion.

Ethereum ETF Activity

Total net assets for Ethereum ETFs reached just below $18 billion, accounting for about 5% of Ethereum’s market capitalization. Among these, BlackRock’s ETHA is the largest by assets, while Grayscale’s ETHE led the day’s inflows, despite a negative cumulative balance from past redemptions.