The cryptocurrency market experienced notable outflows from Bitcoin and Ethereum spot exchange-traded funds (ETFs) on December 30, marking a continued trend of investor withdrawal amid year-end profit-taking and market uncertainty.
Bitcoin Spot ETF Outflows
Bitcoin spot ETFs recorded a total net outflow of $426 million, extending the streak of consecutive daily outflows to two days. Among these, Grayscale’s Bitcoin Trust (GBTC) reported a single-day net outflow of $135 million, contributing to its cumulative historical net outflow of a staggering $21.487 billion.
Ethereum Spot ETF Outflows
Ethereum spot ETFs also saw significant investor withdrawals, with a total net outflow of $55.4 million on December 30. This marked the first net outflow after four consecutive days of net inflows. Similarly, Grayscale’s Ethereum Trust (ETHE) reported a single-day net outflow of $17.4 million, signaling waning investor confidence as 2024 comes to a close.
Market Context
The outflows come amid heightened market volatility and a broader reallocation of assets as investors reassess their portfolios. While spot ETFs have seen significant inflows during bullish periods earlier this year, the recent trend indicates cautious sentiment in the crypto market.
Analysts point to factors such as profit-taking, macroeconomic uncertainty, and competition from alternative investment products as potential reasons for the withdrawals. The year-end period often sees portfolio adjustments, which could further exacerbate outflows in the coming days.
As the market transitions into 2025, all eyes remain on the cryptocurrency landscape, with regulatory developments, institutional participation, and macroeconomic conditions poised to play key roles in shaping investor behavior.
