Spot bitcoin exchange-traded funds (ETFs) posted their first red weekly performance in a month during Christmas week, their worst performance since September. However, analysts noted that the ETF industry had its best year yet.
Bitcoin ETFs Receive Coal for Christmas
At the end of the year, Bitcoin ETFs posted their worst weekly performance in three months. From December 23 to December 27, cryptocurrency-based investment products saw significant outflows, recording three red days last week.
BTC ETFs started the week with a net negative inflow of $564.94 million between the first two days, with positive activity briefly picking up on December 26. It recorded inflows of $475.5 million, its best-performing day since the negative streak began.
However, outflows of $297.75 million on Friday halted the positive momentum, bringing last week’s total outflows to $862.69 million. As a result, Bitcoin ETFs recorded negative net volume of $387.54 million during the last week of 2024.
Spot Bitcoin ETFs see first negative week since November. Source: SoSoValue
Fidelity’s FBTC was the week’s biggest loser, with outflows reaching $208 million on Friday, its second-worst single-day performance this month. It was followed by BlackRock’s IBIT, which saw negative net inflow of $188.7 million.
Meanwhile, ARKB from ARK 21Shares recorded the second-largest inflows over the past seven days, closing the week with $186.9 million. Last week, FBTC also posted its best performance of the month and largest inflows of all funds, at $254.4 million on Thursday.
Best performing year for ETFs
It is worth noting that the investment products recorded significant outflows over the past two weeks, breaking a 15-day streak of inflows that saw the total net assets of Bitcoin ETFs rise from $100 billion to $120 billion.
ETF expert and Bloomberg analyst Eric Balchunas male Total net assets of Bitcoin ETFs approached $128 billion by December 17. He also noted that cryptocurrency-based products had such “unreal” performance that it was “even debated being close to that extent” after just 11 months.
According to SoSoValue data, total outflows of Bitcoin ETFs have exceeded $1.8 billion, and total net assets have fallen to $106.68 billion since the start of the negative performance.
Despite the recent performance, Matthew Bartolini, head of SPDR research for the Americas at State Street Global Advisors, He said FOX Business reported that the global ETF industry “concludes its best year ever.”
The report highlighted this year’s rise in active funds and investors’ “clamor” for new cryptocurrency-based investment products. Sumit Roy, Chief ETF Analyst at ETF.com, emphasized that the launch of new ETFs was one of the reasons for this year’s impressive performance.
Another reason is related to the launch of cryptocurrency ETFs. I’ve seen Spot Bitcoin ETFs pop up now in January, and the inflows have been crazy.
Balchunas has previously noted that Bitcoin ETFs are a “primary vehicle” for traditional investors and a “disruptive force” that has a “great deal of spiritual connection” with Bitcoin, making the investment products a “potent long-term combination.”
The analyst stressed that spot Bitcoin ETFs have “carried real thought” throughout the two “downturns” seen this year, and noted that they will continue to beat expectations despite some negative streaks.
Notably, spot Bitcoin ETFs have exceeded all expectations this year, recording $35.65 billion in positive net inflows throughout 2024, according to Farside Invest. Data.
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com