Bitcoin ETFs Experience Record Outflows Amid Resumed US Trading

On January 2, the 12 Bitcoin exchange-traded funds (ETFs) collectively recorded $242.3 million in outflows, marking a significant shift in investor sentiment as US trading resumed. The largest outflow was seen in BlackRock’s iShares Bitcoin Trust (IBIT), with a record $332.62 million withdrawn from the fund.

This marks the fund’s largest-ever outflow day since its launch on January 11, 2024. The outflows seen by the BTC ETF extended their outflow streak to three consecutive days, with a total of $392.6 million withdrawn from the fund.

Temporary Blip or Sign of a Larger Trend?

Despite the recent outflows, BlackRock’s IBIT ranked third in inflows among all US ETFs in 2024, with $37.2 billion. This suggests that the outflows may be viewed as a temporary blip, rather than a sign of a larger trend. The fund trails the Vanguard 500 Index Fund (VOO), which recorded $116 billion, and the iShares Core S&P 500 ETF (IVV), with $89 billion.

Inflows Seen in Other Bitcoin ETFs

While BlackRock’s IBIT fund experienced significant outflows, other Bitcoin ETFs saw inflows on January 2. These included:

  • Bitwise’s BITB, with $48.31 million
  • Fidelity’s FBTC, with $36.2 million
  • Ark 21Shares’s ARKB, with $16.54 million

Grayscale’s Bitcoin Mini Trust and VanEck’s HODL also recorded modest inflows of $6.89 million and $5.51 million, respectively. However, Grayscale’s larger GBTC fund saw an outflow of $23.13 million.

Total Trading Volume and Market Performance

The total daily trading volume for these investment products stood at $3.24 billion on January 2, significantly higher than the $2.25 billion recorded the previous trading day. At the time of writing, Bitcoin was up 2% in the last 24 hours, exchanging hands at $96,893.

Ether ETFs Also Experience Outflows

The nine spot Ether ETFs recorded an outflow day on January 2, with $77.51 million exiting the funds. The outflows came from Bitwise’s ETHW and Grayscale’s ETHE fund, which recorded outflows of $56.11 million and $21.4 million, respectively.

Ethereum was also up 1.7% over the past day, trading at $3,458 per coin.

Predictions for Crypto ETFs in 2025

Nate Geraci, president of ETF Store, shared his predictions for crypto ETFs in 2025. These include:

“Actually, these will all happen.”

  • The introduction of combined spot BTC and ETH ETFs
  • The launch of options trading for spot ETH ETFs
  • The implementation of in-kind creation and redemption mechanisms for both BTC and ETH spot ETFs
  • The inclusion of staking features for spot Ether funds
  • The approval of a spot Solana ETF

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