Crypto ETFs Face $242M Outflow: Blackrock Leads Losses Amid Market Volatility

U.S. Bitcoin ETFs experienced $242M in outflows on Jan. 2, 2025, with Blackrock leading losses. Learn about market dynamics and investor recalibrations.

Major Withdrawals Hit Bitcoin ETFs

U.S.-based spot bitcoin exchange-traded funds (ETFs) recorded a significant $242.30 million outflow on Thursday, Jan. 2, 2025. This development underscores a day of heightened volatility in cryptocurrency markets, with leading ETFs experiencing notable withdrawals.

Data from Sosovalue shows that the 12 bitcoin ETFs collectively saw $242.30 million exit the funds, marking a significant shift in investor sentiment. Among these, Blackrock’s IBIT fund faced the sharpest loss, with $332.62 million withdrawn, representing one of its most significant outflows to date.

Gains Offset Losses in Select ETFs

Despite the downturn, not all ETFs faced losses. Bitwise’s BITB fund gained $48.31 million, and Fidelity’s FBTC attracted $36.20 million. Other funds, including Ark Invest and 21Shares’ ARKB ($16.54 million), Grayscale’s Bitcoin Mini Trust ($6.89 million), and Vaneck’s HODL ($5.51 million), also recorded gains that softened the broader decline.

The trading session concluded with $3.24 billion in total activity on Jan. 2. However, this significant outflow reduces the total net inflows accumulated by bitcoin ETFs since Jan. 11, 2024, to $35 billion.

Bitcoin ETFs Hold 5.68% of Market Value

As of Jan. 2, the 12 bitcoin ETFs collectively hold $109.43 billion in BTC, accounting for 5.68% of bitcoin’s total market capitalization. This reflects their importance in the broader cryptocurrency ecosystem, despite periodic outflows.

Ether ETFs Face Similar Challenges

Bitcoin ETFs were not the only funds impacted. Nine ether-based ETFs collectively lost $77.51 million during the same period. The losses were led by Bitwise’s ETHW ($56.11 million) and Grayscale’s ETHE ($21.40 million). The remaining seven ether ETFs saw no significant movement, reflecting steadier activity.

The nine ether ETFs collectively manage $12.44 billion in reserves, accounting for 2.99% of ether’s total market value.

Market Recalibrations Reflect Investor Strategies

The shifts in bitcoin and ether ETF inflows highlight evolving market dynamics. Investors are strategically reallocating funds to respond to volatility, emphasizing both opportunities and risks in cryptocurrency markets.

Stay informed on cryptocurrency ETF trends and market insights, monitor your investments to navigate these dynamic times effectively.