Bitcoin exchange-traded funds (ETFs) have seen large withdrawals lately, amounting to almost $1.2 billion in just three days, including a record single-day pull of $680 million on December 19.
This is the biggest outflow since Bitcoin ETFs started, causing analysts to worry about changes in investor feelings, even though profit-taking is said to be the main reason.
Before this decline, Bitcoin ETFs saw strong inflows, raising total assets from $100 billion to $121 billion, but recent withdrawals have brought net assets down to $105 billion.
Grayscale’s GBTC fund caused a significant amount of outflows by selling 1,870 BTC in just three days. On the other hand, BlackRock’s IBIT fund kept buying Bitcoin, but it wasn’t enough to stop the selling pressure.
Even with these challenges, confidence in Bitcoin is strong. Bitcoin ETFs have recently overtaken gold ETFs in total assets, showing that both institutional and retail investors are increasingly trusting digital assets.
While Bitcoin is facing challenges, Ethereum ETFs have gained over $130 million, especially on December 23, when Bitcoin ETFs saw $226 million in outflows. BlackRock’s Ethereum ETF has gathered more than 1 million ETH, showing increased interest from institutions in Ethereum.
Investor Dan Gambardello pointed out that this accumulation phase and BlackRock’s growing holdings might indicate a possible comeback in the altcoin market.
Experts say that many Bitcoin ETF outflows are due to profit-taking, but the growing interest in Ethereum might show a change in how people are investing. How Bitcoin and Ethereum perform in the next few weeks will be key to shaping the cryptocurrency market’s future.