Bitcoin ETFs record $680m outflows as BTC dips below $96k

Spot Bitcoin exchange-traded funds in the US recorded outflows of $680 million on December 19 as Bitcoin fell below $96,000 at a time when the Federal Reserve maintained a cautious outlook on future interest rate cuts.

12 spot Bitcoin ETFs recorded outflows of $680 million on Thursday, breaking a 15-day streak of inflows that brought more than $6.7 billion into the funds, according to data from SoSoValue.

Fidelity’s FBTC led the decline with an outflow of $208.55 million from the fund, followed by Grayscale Bitcoin Mini Trust and ARK 21Shares’ ARKB, which recorded outflows of $188.6 million and $108.35 million, respectively. Other notable releases include:

Grayscale’s GBTC: $87.86 million Bitwise BITB: $43.61 million Invesco Galaxy’s BTCO: $25.97 million VanEck’s HODL: $10.91 million Valkyrie’s BRRR’ si: 8.19 million dollars

Amid the sell-off, WisdomTree’s BTCW remained an outlier, attracting a modest inflow of $2.05 million. BlackRock’s IBIT and two other BTC ETFs reported no change in flows on the day.

Despite the outflows, trading activity in Bitcoin ETFs increased, with total trading volume reaching $6.31 billion, a significant increase from $5.86 billion the previous day.

Bitcoin’s (BTC) drop below $96,000 (down 4.4% to $96,751 at reporting) was largely attributed to the Federal Reserve’s recent interest rate decision.

While the Fed implemented a widely anticipated 0.25% interest rate cut, bringing this year’s cumulative cuts to 1%, officials have signaled a cautious approach going forward. Only two additional interest rate cuts are planned for 2025, and inflation is projected to reach the 2 percent target by 2026 or 2027. This hawkish tone dampened investor sentiment, leading to a 4.5 percent decline in the broader $3.51 trillion cryptocurrency market.

Ethereum ETFs Follow Same Falling Momentum

Spot Ethereum ETFs also faced a rough day, recording outflows of $60.47 million and breaking an 18-day streak of inflows.

Grayscale’s ETHE accounted for the majority with $58.13 million coming out of the fund. Bitwise’s ETHW, Grayscale Ethereum Mini Trust, and Invesco’s QETH also saw outflows of $6.78 million, $3.18 million, and $2.36 million, respectively.

In contrast, Fidelity’s FETH and VanEck’s ETHV managed to attract inflows of $5.05 million and $4.94 million, partially offsetting the overall trend.

Despite daily outflows, cumulative net inflows into Ethereum ETFs remained positive at $2.4 billion. The price of Ethereum (ETH) is reflecting the bearish trend, dropping 8.1% over the past day to $3,378 per coin.