TLDR
- Bitcoin ETFs saw net outflows of $582 million on Wednesday – second highest ever
- Ethereum ETFs experienced $159.3 million in outflows
- Fidelity’s FBTC led outflows with $258 million withdrawn
- Bitcoin price dropped to $92,500 on macro concerns
- In December 2024, ETFs bought 51,500 BTC versus 13,850 BTC mined
US-listed cryptocurrency ETFs experienced significant withdrawals on Wednesdaywith Bitcoin and Ethereum funds seeing combined outflows of over $740 million amid growing macroeconomic uncertainty.
Data from SoSoValue shows that eleven Bitcoin ETFs recorded a net outflow of $582 million, marking the second largest one-day withdrawal since launch. This figure approaches the previous record of $680 million set on December 19.
Fidelity’s FBTC emerged as the most affected fund, with investors pulling out $258 million, setting a new record for the product. BlackRock’s IBIT also saw notable outflows, losing $124 million over the same period.
The Ethereum ETF market faced similar pressure, with funds experiencing outflows of $159.3 million. This represents the largest withdrawal since July 26, when these funds received $162 million in redemptions.
The price of Bitcoin reflected these market movements, dropping to $92,500 at one point. This decline came after hitting a high of $102,000 on January 7, representing a 6.21% drop in 24 hours.
Recent minutes from the Federal Reserve revealed concerns about the inflationary effects of various policies, contributing to increased volatility in the bond market and putting pressure on risk assets such as cryptocurrencies.
Looking back to December 2024, Bitcoin ETFs showed strong buying activity, buying 51,500 BTC during the month. This amount significantly exceeded the 13,850 BTC mined during the same period, highlighting the growing influence of ETF products on market dynamics.
The cryptocurrency market showed robust performance throughout 2024, with Bitcoin increasing by 116% over the year. This growth paralleled the expansion of institutional investment vehicles.
Market data indicates that Bitcoin and Ethereum have both delivered similar returns from their cycle bottoms, with each showing around 4.0x returns. These parallel performance metrics suggest that both assets have retained their appeal to investors.
ETF trading volumes remain robust despite recent outflows, indicating continued market engagement even during periods of withdrawal activity.
Data from December 2024 highlighted the growing impact of ETF products on cryptocurrency markets, with purchase volumes exceeding new Bitcoin production by a factor of nearly four.
