On December 19, 2024, Bitcoin ETFs experienced a historic net outflow of $671.9 million, marking the largest single-day withdrawal since their launch in January. This coincided with a sharp decline in Bitcoin’s price, which fell to $93,000 after reaching an all-time high above $108,000 earlier in the week.
Fidelity Bitcoin ETF Leads the Way
According to Spot on Chain data, Fidelity’s Bitcoin ETF (FBTC) saw the largest withdrawal with $208.5 million leaving the fund. BlackRock’s Bitcoin ETF (IBIT) remained unaffected, showing no net change. These outflows ended a 15-day streak of consistent inflows into Bitcoin ETFs and an 18-day streak for Ethereum ETFs.
BTC and ETH Prices Decline
Bitcoin price action dropped below $92,000 on Friday, recovering slightly to $94,104, marking a 7.7% daily decline and a 10% drop since Monday’s high of over $106,000. This followed the Federal Reserve’s announcement of a slowdown in interest rate cuts for 2025. Despite the Fed’s third rate cut of the year, which typically boosts risk assets, concerns over persistent inflation pressured the market. Ethereum’s price also fell nearly 20%, influenced by significant whale selling and the Ethereum Foundation’s recent transactions.
Dual ETF Greenlight from SEC
The U.S. Securities and Exchange Commission (SEC) approved crypto index ETFs from asset managers Hashdex and Franklin Templeton. The Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF will feature a mix of Bitcoin and Ethereum with an 80/20 average weighting, though other assets may be added later.
Despite recent market fluctuations and record outflows, the approval of new crypto ETFs by the SEC offers hope for stabilization and potential future recovery of the cryptocurrency markets.
