EddieJayonCrypto
20 Dec 24
Bitcoin spot exchange-traded funds (ETFs) experienced record-high net outflows of $671.9 million, the highest reported since their launch in January. The Grayscale Bitcoin Trust (GBTC) lost the most capital with $208.6 million, followed by the ARK 21Shares Bitcoin ETF losing $108.4 million, accordin...
Bitcoin spot exchange-traded funds (ETFs) experienced record-high net outflows of $671.9 million, the highest reported since their launch in January. The Grayscale Bitcoin Trust (GBTC) lost the most capital with $208.6 million, followed by the ARK 21Shares Bitcoin ETF losing $108.4 million, according to Farside Investors data.
This outflow coincided with a downturn in Bitcoin’s price, trading at under $93,000 and losing 9.2% over 24 hours. Wintermute noted that spot prices turned lower following the U.S. market open due to fresh rounds of selling, mirroring declines in equities and bonds.
The Federal Reserve's expected rate reduction and a shift in Powell's tone were cited as factors contributing to market fragility. Investors are taking profits due to Fed policy uncertainty, with a shift to lower-fee alternatives driving the outflows.
Ajay Dhingra of DeFi protocol Unizen believes that profit-taking amid market volatility and a shift to lower-fee alternatives drove the outflows. He also highlighted the potential trigger for a Bitcoin bull run, citing SEC Chair Gary Gensler’s departure and potential regulatory scrutiny.