Bitcoin ETFs Break 4-Day Outflow Streak, Record $475M Inflow

Bitcoin ETFs made a strong comeback on Thursday, attracting $475.15 million in inflows after four consecutive days of outflows. Fidelity’s FBTC led the charge, contributing over half of the total inflows. Despite Bitcoin’s dip to $95,600, institutional interest seems undeterred, as companies explore new treasury strategies and fund innovations.

Fidelity Leads Inflows with $254M Boost

Thursday’s inflow was primarily driven by Fidelity’s FBTC, which brought in $254.37 million. This marked a significant reversal in market sentiment after several days of outflows. ARK & 21Shares’ ARKB followed closely, adding $186.94 million, and BlackRock’s IBIT chipped in $56.51 million.

Not all funds had a bullish day, however:

• Grayscale’s GBTC saw $24.23 million in outflows.
• Bitwise’s BITB lost $8.32 million.
• Five smaller ETFs recorded no movement.

These mixed results highlight varying investor confidence levels across products, reflecting the broader uncertainty in Bitcoin markets.

Bitcoin Price Struggles Below $100,000

Bitcoin, the leading cryptocurrency, remains under pressure. Currently priced at $95,600 after a 2.35% dip in 24 hours, it is struggling to reclaim the $100,000 threshold. The rejection of this key psychological level on Thursday highlights ongoing bearish sentiment.

• Bitcoin’s market cap has dropped to $1.88 trillion, down from a peak of over $2 trillion.
• Its broader market, which includes altcoins, saw a 1.08% decline to $3.32 trillion.

The dip in price comes despite strong buying activity from institutional players like MicroStrategy and Metaplanet, which continue to accumulate Bitcoin during market corrections.

Institutional Interest Ramps Up

Institutional investors showed renewed enthusiasm for Bitcoin on Thursday, coinciding with announcements like KULR Technology Group’s foray into Bitcoin treasury holdings. The company disclosed a $21 million Bitcoin purchase, adding 217.18 BTC to its reserves. This mirrors strategies adopted by firms like MicroStrategy, which have used Bitcoin as a hedge against fiat currency devaluation.

Bitwise also filed for a new product called the “Bitcoin Standard Corporations ETF,” which will target companies holding more than 1,000 Bitcoin. This fund aims to tap into the growing trend of corporations integrating Bitcoin into their balance sheets.

ETF Store President Nate Geraci noted the broader implications, stating, “The BTC treasury operations virus is spreading.” This sentiment underscores the gradual adoption of Bitcoin as a corporate reserve asset.

Ethereum ETFs See Positive Flows Too

While Bitcoin dominated the headlines, Ethereum ETFs also witnessed a positive day, recording $117.09 million in inflows. This parallel movement suggests growing confidence in the broader cryptocurrency market, despite recent price volatility.

Recent Trends in Bitcoin ETFs

Bitcoin ETFs have had a mixed performance in December. Earlier this month, these funds enjoyed a 15-day streak of net inflows, indicating strong investor confidence. However, last week’s outflows interrupted this momentum, with Thursday’s rebound offering a glimmer of optimism.

Table: Thursday’s Bitcoin ETF Performance

Market Outlook: Recovery or More Pain?

Despite challenges, some analysts see signs of recovery. CryptoQuant contributor Burrakesmeci highlighted an uptick in Binance’s Bitcoin Taker Buy Volume, a metric tracking aggressive buying. This trend, forming “higher lows” since October, could signal increasing buying pressure from investors.

However, breaking through $100,000 remains critical for Bitcoin’s market sentiment. If the level is surpassed, it could trigger renewed enthusiasm and push the market higher. Until then, volatility is likely to persist as investors weigh short-term risks against long-term potential.