In a day of contrasting flows for cryptocurrency exchange-traded funds, U.S. spot Bitcoin ETFs experienced a significant net outflow of $142.09 million on December 22nd, marking the third consecutive day of withdrawals. Data from analyst Trader T showed outflows were widespread, with Bitwise BITB seeing $34.96 million exit, VanEck HODL losing $33.64 million, Grayscale GBTC shedding $28.99 million, Grayscale Mini BTC losing $25.40 million, and Ark Invest ARKB experiencing a $21.36 million outflow.
However, BlackRock's iShares Bitcoin Trust (IBIT) was a notable exception, attracting a net inflow of $6.1 million. This divergence suggests a potential "flight to quality," with investors consolidating holdings with the largest and most trusted asset manager amid market uncertainty. Analysts point to potential reasons for the broader Bitcoin ETF outflows, including year-end profit-taking, portfolio rebalancing, and reactions to market volatility.
In a stark reversal for a different asset, U.S. spot Ethereum ETFs recorded a net inflow of $84.59 million on the same day, decisively ending a seven-day streak of net outflows. Grayscale's products led the charge, with its flagship Ethereum Trust (ETHE) attracting $53.7 million and its Mini ETH product adding $30.89 million. Other spot Ethereum ETFs registered zero net activity, indicating the inflow was highly concentrated.
This surge for ETH ETFs is seen as a potential renewal of institutional confidence, providing direct buying support for the underlying Ethereum asset. The contrasting flows highlight the evolving and discerning nature of the cryptocurrency investment landscape, where investor sentiment can pivot rapidly and capital is increasingly selective based on provider trust and perceived value.
