Bitcoin and Ethereum Spot ETFs See Sharp Outflows to End 2024, but Experts Remain Optimistic About Long-Term Prospects

On December 30, 2024, 12 spot Bitcoin ETFs reported a collective withdrawal of $426 million, extending a two-day streak that brought total outflows to $723 million

Major Bitcoin exchange-traded funds (ETFs) in the United States experienced collective outflows on December 30, extending a two-day streak. These outflows come amid fluctuating cryptocurrency prices and year-end portfolio re-balancing.

On December 30, 12 spot Bitcoin ETFs experienced a collective outflow of $426 million, extending a two-day total to $723 million, according to data from SoSoValue. Among these funds, Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw the largest outflow at $154.64 million.

Other funds also experienced substantial outflows, including Bitwise’s BITB, Grayscale’s Bitcoin Mini Trust, and ARK 21Shares Bitcoin ETF. Notably, none of the Bitcoin ETFs reported any inflows on the day.

This outflow trend also extended to Ethereum spot ETFs, with the asset class recording a net outflow of $55.4 million on December 30, concluding four straight days of inflows. Among those, Fidelity’s Ethereum Fund recorded the steepest outflow at $20.41 million.

Grayscale’s Ethereum Trust and Mini Ethereum Trust also experienced outflows of $17.36 million and $13.75 million, respectively. However, Ethereum ETFs recorded a strong month overall, with over $2 billion in net inflows in December.

This outflow from Bitcoin and Ethereum ETFs comes as investor apprehension mounts amid fluctuating cryptocurrency prices. Bitcoin, trading at $92,458 at press time, saw a slight dip of 1% on December 30.

Meanwhile, Ethereum's price fell to $3,353, indicating a 9% monthly decline.

These outflows may also be attributed to year-end portfolio re-balancing strategies by investors and traders. Analysts view the recent outflows as a short-term reaction rather than an indication of diminished long-term confidence in Bitcoin and Ethereum.

Despite the recent outflows, Bitcoin ETFs recorded an impressive $35.66 billion in net inflows throughout 2024, surpassing early industry projections.

Among these funds, BlackRock’s iShares Bitcoin Trust (IBIT) led the market with $37.31 billion in inflows, followed by Fidelity’s FBTC and ARK’s 21Shares Bitcoin ETF with inflows of $11.84 billion and $2.49 billion, respectively.

Overall, the long-term outlook for Bitcoin and Ethereum ETFs appears optimistic, with experts anticipating a return to inflows as the market stabilizes.