The U.S. Bitcoin Spot ETF market faced a significant downturn as it closed the year with an outflow of $348.10 million on December 31. This shift reflects a notable pullback in investor engagement, with the largest contributions to the outflow coming from IBIT and ARKB.
IBIT, managed by BlackRock, recorded the most considerable single-day outflow of $99.05 million, equivalent to approximately 1.13K BTC, while trading $1.68 billion in volume. As of the end of December, IBIT maintained a leading position in the market, boasting net assets of $67.29 billion. The ETF”s share price closed at $49.65, reflecting a slight decline of 0.36% for the day.
Following IBIT, FBTC from Fidelity experienced a substantial outflow of $66.58 million, representing 762.56 BTC, with a daily trading volume of $348.69 million. The ETF concluded the day at $76.23, down 0.42%. Unlike IBIT, FBTC stands out with no management fee, enhancing its cost efficiency.
GBTC, another significant player in the market, registered a $69.09 million outflow, translating to 791.31 BTC. Its total assets are valued at $14.43 billion. The ETF has been struggling, with a cumulative net outflow amounting to $25.25 billion since its inception. It closed at $68.36, down 0.36%, compounded by a management fee of 1.50%.
The total trading volume across the Bitcoin ETFs reached $2.83 billion, with cumulative net inflows still showing a robust figure of $56.61 billion for the year. However, overall net assets across all funds amounted to $113.29 billion, which constitutes approximately 6.47% of Bitcoin”s total market capitalization.
Mid-tier ETFs exhibited mixed results. HODL reported a minor outflow of $6.79 million, closing at $24.73, while BTCO and BRRR recorded no inflow or outflow activity. EZBC noted a $5.05 million outflow, and BTCW remained stagnant, with no recorded movements.
As the Bitcoin ETF landscape evolves, these outflows highlight the shifting dynamics and investor sentiment surrounding these financial instruments. The market will be closely monitored as analysts evaluate the implications of these trends moving forward into 2024.
