Outflows from Bitcoin and Ethereum Spot Exchange Traded Funds (ETFs) Continue! Here is the Most Obvious Reason!

Crypto even market on December 30 Bitcoin ve Ethereum spot exchange-traded funds (ETFs) experienced significant outflows, signaling a continued trend of investor withdrawals amid year-end profit-taking and market uncertainty.

Bitcoin and Ethereum Spot ETFs See Significant Outflows as Year-End Approaches

Bitcoin Spot ETF Outflows

Bitcoin spot ETFs recorded a total net outflow of $426 million, extending their streak of consecutive daily outflows to two days. Among them, Grayscale’s Bitcoin Trust (GBTC) reported a single-day net outflow of $135 million, contributing to a staggering total historical net outflow of $21.487 billion.

Ethereum Spot ETF Outflows

Ethereum spot ETFs also saw significant investor withdrawals, with net outflows totaling $55.4 million on December 30.

This was the first net outflow after four consecutive days of net inflows. Similarly, Grayscale’s Ethereum Trust (ETHE) reported a single-day net outflow of $17.4 million, signaling waning investor confidence as 2024 approaches.

The outflows come amid increased market volatility and a broader reallocation of assets as investors reassess their portfolios.

While spot ETFs saw significant inflows during bullish periods earlier this year, the recent trend points to cautious sentiment in the crypto market.

Analysts point to factors such as profit taking, macroeconomic uncertainty and competition from alternative investment products as possible reasons for withdrawals.

The year-end period usually sees portfolio adjustments, which may further exacerbate outflows in the coming days.

As the market moves into 2025, all eyes will be on the cryptocurrency world, with regulatory developments, institutional involvement and macroeconomic conditions set to play a key role in shaping investor behavior.

*This is not investment advice.