U.S. Bitcoin ETFs Experience $355 Million Inflows After Week of Withdrawals

Bitcoin ETF inflows rebound after week-long outflows

Summary:
U.S. spot Bitcoin exchange-traded funds (ETFs) saw a significant turnaround on December 30, recording $355 million in inflows after a week-long period of withdrawals that totaled over $1.12 billion. This reversal was primarily driven by major funds from BlackRock, ARK 21Shares, and Fidelity.

Key Takeaways:

On December 30, U.S. Bitcoin ETFs recorded $355 million in inflows, ending a seven-day outflow streak.
The previous week experienced substantial withdrawals, exceeding $150 million daily.
BlackRock’s ETF led the inflows with approximately $143.7 million.
Fidelity and ARK Invest’s funds also contributed significantly to the inflows.
The positive flow breaks a downward trend but does not fully counteract previous losses.

U.S. Bitcoin ETFs See Major Inflows

On December 30, U.S. spot Bitcoin exchange-traded funds recorded an impressive $355 million in net inflows, marking the end of a tough seven-day period where outflows exceeded $1.12 billion. This flow data indicates a significant shift in the market after a week marked by considerable withdrawals.

The recent inflows signal the first positive day for the sector following a lengthy streak of selling. Over the previous week, daily outflows were often above $150 million, with December 26 noted for having one of the largest single-day drop-offs.

Breakdown of Inflows by Fund

Leading the inflows on December 30 was BlackRock’s Bitcoin ETF, which contributed about $143.7 million. Fidelity's fund added $78.6 million, and ARK Invest's fund along with 21Shares saw a combined increase of $109.6 million. Additional contributions came from Bitwise’s fund, which saw inflows of $13.9 million, followed by VanEck’s fund at $5 million and Grayscale’s product at $4.3 million. Many other funds reported minimal or no activity during this session.

These inflows were diversified among various issuers, which differed from the previous week where outflows negatively impacted almost all major funds. The consistent selling throughout late December pushed total weekly losses beyond the $1 billion mark.

Fees and Future Market Outlook

Currently, most spot Bitcoin ETFs charge annual fees ranging from 0.19% to 0.25%, although there are some that fall outside of this range. The inflows recorded on December 30 were not limited to the lowest-fee products but were spread across several significant issuers.

While the positive trend in inflows seen on December 30 is encouraging, it does not completely erase the losses experienced in the prior week. Market analysts believe that further trading sessions in early January will be crucial in determining if this shift represents a lasting change in investor sentiment or simply a momentary reprieve from selling pressure.