U.S.-based spot Bitcoin ETFs have experienced a significant setback, shedding nearly $1.2 billion in outflows over a three-day period—the longest such streak since the days leading up to the 2024 re-election of former President Donald Trump. The three-day outflow streak has erased much of the inflow gains these ETFs achieved earlier in December.
Decline in Value
According to SoSoValue data, the 12 spot Bitcoin ETFs operating in U.S. markets recorded $1.18 billion in outflows between Dec. 18 and Dec. 23. Coupled with bitcoin’s declining price during this period, the total value held in these funds dropped by $10.7 billion, from a high of $121.7 billion on Dec. 16 to just over $105 billion by the end of trading on Monday.
Despite this decline, the funds’ value remains slightly above the $103.9 billion recorded at the beginning of December.
Fund-Level Trends
The outflows were not evenly distributed among the ETFs. Fidelity’s FBTC fund accounted for the largest share, with $426 million in outflows. BlackRock’s IBIT fund, however, saw only $41 million in outflows over one day and remained stable for another day, defying the broader trend.
Signs of Reversal?
Bitcoin’s price showed signs of recovery on Tuesday, gaining nearly 6% in 24 hours, suggesting a possible end to the outflow streak. However, updated ETF inflow data for Tuesday was not yet available at the time of reporting.
Ethereum ETFs Stay Steady
While Bitcoin ETFs faced significant challenges, spot Ethereum ETFs saw minimal activity. Total inflows and outflows nearly balanced out, with outflows exceeding inflows by just $4.83 million. However, the overall value of Ethereum ETFs declined by $1.1 billion during the same period, largely due to price fluctuations.
Market Implications
The recent outflows highlight the volatility and sensitivity of Bitcoin ETFs to broader market conditions and investor sentiment. Despite the setback, analysts believe that institutional interest remains strong, with rebounds likely in the coming weeks as market dynamics stabilize.
