Reports revealed that BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced its largest single-day withdrawal on December 24, with $188.7 million removed. CoinGlass data showed this outflow surpassed the previous record of $72.7 million on December 20.
Reports revealed that US spot Bitcoin ETFs, in total, faced outflows of $338.4 million on the same day. Since December 19, these funds have seen $1.52 billion in net withdrawals.
Ether ETFs Gain Momentum As Bitcoin ETFs Surpass Gold In AUM
Among the funds, the Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF had notable outflows of $83.2 million and $75 million, respectively. However, reports highlighted that the Bitwise Bitcoin ETF stood out with an inflow of $8.5 million.
In contrast, Ether ETFs showed a different trend. Reports revealed that US-based Ether ETFs had two consecutive days of inflows leading up to Christmas. Data showed $53.6 million entered Ether ETFs on December 24, following $130.8 million on December 23.
Analysts reported that Ether ETFs have gained attention recently, especially after an 18-day streak of inflows in November. Although Bitcoin ETFs were introduced earlier in January, Ether ETFs, launched in July, have been catching up.
Reports also revealed Bitcoin’s price on December 24 as $98,035, reflecting a 4.59% rise in 24 hours. Ether was reported at $3,420, up 3.28%. Analysts suggested Ether could perform better than Bitcoin in early 2025.
Additionally, reports showed that US Bitcoin ETFs exceeded gold ETFs in assets under management (AUM) for the first time on December 16.
Bloomberg ETF analyst Eric Balchunas stated that the AUM figure includes both spot Bitcoin ETFs and ETFs that monitor Bitcoin’s performance through financial derivatives like futures.
Bitcoin ETFs Highlight Diversification Potential Amid Volatility Risks
Data revealed Bitcoin ETFs reached $129 billion, including spot ETFs and those tracking Bitcoin with derivatives, while gold ETFs held slightly less. This information was based on research from K33 and Bloomberg.
BlackRock reportedly recommended that investors consider assigning up to 2% of their portfolios to Bitcoin. The firm stated that Bitcoin offers diversification because of its lower historical correlation with other major assets. However, it also highlighted Bitcoin’s risks, including its high volatility.
Reports pointed out that Bitcoin’s price movements can sometimes mirror risk assets like stocks, reducing its value as a hedge. Despite this, BlackRock noted Bitcoin’s potential to provide alternative returns, while cautioning investors to carefully weigh the risks involved.
As of now, Bitcoin is trading around $99,000. The firm’s analysis stressed both the opportunities and challenges associated with investing in Bitcoin.