Bitcoin ETFs in the United States have experienced three consecutive days of outflows, with a record single-day outflow of nearly $1.2 billion leading up to Christmas. This temporary weakening in Bitcoin’s upward momentum has raised questions about whether it is simply profit-taking or a more structural shift in capital. While investor Antonio Zennaro believes it is likely profit-taking, it is important to monitor market sentiment and institutional moves to confirm.
Prior to the recent outflows, Bitcoin ETFs had seen 15 consecutive days of positive netflows, pushing total net assets from $100 billion to $121 billion. However, the recent outflows have contributed to a drop in total net assets to $105 billion. Grayscale’s GBTC was a major contributor to the outflows, having sold 1,870 BTC in the last three trading days, outweighing the buying activity from BlackRock’s IBIT during the same period.
Despite the recent negative netflows, investor optimism toward Bitcoin remains strong, with Bitcoin ETFs surpassing gold ETFs in assets under management (AUM) in December. This signals growing confidence in digital assets from both institutional and retail investors. On the other hand, Ethereum ETFs in the US showed positive signs, with net inflows during the December 23 trading session. While Bitcoin ETFs experienced $226 million in outflows, Ethereum ETFs attracted over $130 million in inflows.
Many investors believe that the positive momentum for Ethereum and altcoins, especially after Ethereum’s price dropped from $4,100 to nearly $3,100 in December, is a good indicator for altcoin season. BlackRock’s Ethereum ETF now holds over 1,000,000 ETH, which, paired with ETH still consolidating below its all-time high, is seen as a unique altcoin season signal. Investor Dan Gambardello sees this as an opportunity for Ethereum and other altcoins to potentially see increased interest and gains in the near future.
Overall, the recent outflows from Bitcoin ETFs in the US and the positive net inflows for Ethereum ETFs signal a shifting landscape in the cryptocurrency market. While Bitcoin may be experiencing a temporary dip in netflows, investor optimism remains strong, and the growing confidence in digital assets may lead to further growth in the market. With key players like Grayscale and BlackRock making moves in the ETF space, it will be important to monitor market trends and institutional behavior to gauge the future direction of cryptocurrencies like Bitcoin and Ethereum.
