18 December, 2024
Crypto's resilience: ETFs attract millions despite market woes
On Wednesday, Dec. 18, 12 Bitcoin (BTC) spot exchange-traded funds (ETFs) attracted $275.39 million in positive inflows, even as the broader cryptocurrency market faced a downturn that saw Bitcoin briefly fall below $100,000.
Crypto’s Resilience: ETFs Attract Millions Despite Market Woes
While Bitcoin Funds Shine, Ethereum ETFs Record Small Gains
Spot Bitcoin ETFs and their Ether (ETH) counterparts all reported gains on Dec. 18, despite a volatile crypto environment. BTC-related funds attracted $275.39 million, according to data from sosovalue.com. BlackRock’s IBIT fund stood out in particular, pulling in $359.63 million. However, this was partially offset by outflows from four other funds. Grayscale’s GBTC saw the biggest loss, losing $35.94 million.
Invesco’s BTCO followed closely behind with outflows of $25.17 million, while Bitwise’s BITB lost $16.56 million. Ark Invest and 21shares’ ARKB funds dropped $6.58 million. Despite these losses, IBIT’s single-day inflows brought the year-to-date net total to $37.01 billion as of January 11, 2024. Wednesday’s trading volume also reached $5.86 billion across 12 funds, which collectively hold $115.78 billion worth of Bitcoin, equivalent to 5.80% of the circulating supply.
Ethereum funds also showed this trend, with inflows of $2.45 million on Wednesday, led by BlackRock’s ETHA with $81.91 million. However, not all Ethereum funds performed well. Grayscale’s ETHE took losses, withdrawing $49.2 million, its Ethereum Mini Trust saw outflows of $15.64 million, and Bitwise’s ETHW also saw outflows of $14.62 million.
These net increases bring the cumulative inflows into Ethereum funds since July 23 to $2.46 billion. Data from Sosovalue.com shows that nine Ethereum funds had trading volume of $994.22 million on Wednesday. Together, these funds hold $13.17 billion in ETH reserves, accounting for 2.96% of the cryptocurrency’s market capitalization.
Continued inflows into Bitcoin and Ethereum ETFs highlight investor confidence in these assets, even amid market turmoil. As these funds continue to grow their holdings, their influence on crypto market dynamics and liquidity is likely to become more significant.
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