Bloodbath as Spot Bitcoin ETFs Lose $671 million in 24 hours

The 11-spot Bitcoin Exchange Traded Funds (ETF) witnessed a blood bath yesterday recording over $671 million in outflows. This follows a general downturn in the market which saw Bitcoin drop from above $100,000 for the first time this week. 

At the time of the report, Bitcoin is exchanging hands for $95,430 a 12% drop from its all-time high of $108,135. Surprisingly Bitcoin hit its new all-time high three days ago meaning that the flagship crypto asset lost $13,000 in 72 hours. 

Bloodbath in the ETFs 

Seven of the eleven spot Bitcoin ETFs on Dec 19 recorded outflows with Blackrock the largest Bitcoin ETF recording no transaction for the day. 

Farside Investors UK revealed that Fidelity’s FBTC recorded the highest outflow for the day losing $208.5 million. 

Significant Outflows were recorded by Grayscale’s BTC and ARK 21 shares ARKB losing $188 million and $108 million respectively. 

Grayscale’s GBTC and Bitwise BITB recorded losses under $100 million losing $87 million and $43 million respectively. 

The remaining outflows for the day were recorded in Investco’s BTCO and VanEck HODL with the duo losing $26.0 million and $10.9 million respectively. 

The Cumulative Total net inflow for the 11 spot Bitcoin ETFs stood at $36.33 billion with a Total value traded at $6.31 billion per data from Sosovalue. 

Yesterday marked the first time Blacrock’s IBIT recorded no transaction in 5 trading days. IBIT is the largest Bitcoin ETF by inflows and usually accounts for over 50% of total inflows to the Bitcoin ETFs. 

Why is Bitcoin Dumping? 

Bitcoin the flagship crypto asset lost $13,000 in 3 days dropping from an all-time high of $108,135 to $95, 430 at the time of this report. 

Bitcoin’s slump follows the Federal Open Market Committee announcement on Federal Fund rate cuts released on Wednesday by Chairman Jerome Powell. 

Bitcoin began its steep decline on Dec 18 the day the FOMC data released its Federal rate cuts. 

The Primary crypto asset dropped from $105,999 to $101,083 on Dec 19. Then slumped further to $96,448 later in the day. 

Aside from the FOMC reducing its projected 2025 rate cuts from four to two, Chairman Powell also stated that the Central Bank cannot hold Bitcoin unless approved by Congress. 

This statement cast shadows of doubt on the proposed Bitcoin reserve by the incoming Donald Trump administration. These factors played a role in Bitcoin price dumping from a fundamental point of view. 

The crypto market’s reaction aligned with broader financial markets as the Nasdaq fell over 3% and the Dollar hit a two-year high.