bitcoin (btc) spot exchange-traded funds (ETFs) posted their first weekly performance in the red 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 Get Coal for Christmas
As the year ends, bitcoin ETFs have recorded their worst weekly performance in three months. From December 23 to 27, cryptocurrency-based investment products saw significant outflows, recording three red days last week.
btc ETFs began the week with 564.94 million negative net flows between the first two days, with positive activity briefly rebounding on December 26. During the momentary Christmas rally, which saw bitcoin rise back to the $98,000 to $99,000 price range, btc investment products saw $475.5 million in inflows, its best day since the streak began negative.
However, Friday's outflows of $297.75 million halted the positive momentum, bringing last week's total outflows to $862.69 million. As a result, bitcoin ETFs recorded negative net volume worth $387.54 million during the last week of 2024.
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Spot bitcoin ETFs see first negative week since November. Source: SoSoValue
Fidelity's FBTC was the biggest loser of the week, with $208 million in outflows on Friday, which was its second-worst single-day performance this month. It was followed by BlackRock's IBIT, which recorded a negative net flow of $188.7 million.
Meanwhile, ARK 21Shares' ARKB posted the second-largest inflows of the past seven days, closing the week with $186.9 million. Last week, FBTC also posted its best performance of the month and the largest inflows of any fund, with $254.4 million on Thursday.
Best performing year for ETFs
It's worth noting that investment products have been seeing substantial outflows over the past two weeks, breaking a 15-day inflow streak that saw total net assets of btc ETFs rise from $100 billion to $120 billion. millions.
Eric Balchunas, ETF expert and Bloomberg analyst <a target="_blank" href="https://x.com/EricBalchunas/status/1869032761207742717″ target=”_blank” rel=”noopener nofollow”>noted Total net assets of spot bitcoin ETFs approached $128 billion of gold ETFs on December 17. He also noted that cryptocurrency-based products have been performing “unrealistically” to “even argue that they are that close” after just 11 months.
According to SoSoValue data, total bitcoin ETF outflows have surpassed $1.8 billion, and total net assets have declined to $106.68 billion since the negative performance began.
Despite recent performance, Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors, said FOX Business that the global ETF industry is “closing out the best year in its history.”
The report highlighted this year's rise in active funds and investors “crying out” for new cryptocurrency-based investment products. Sumit Roy, senior ETF analyst for ETF.com, said the launch of the new ETFs was one of the reasons for this year's notable performance.
Another reason has to do with the launch of crypto ETFs. You've seen bitcoin Spot ETFs appear in January, the inflows have been crazy.
Balchunas previously noted that btc ETFs are “the primary vehicle” for traditional investors and a “disruptive powerhouse” that has “a lot of spiritual connection” to bitcoin, making the investment products a “strong long-term combination.” “.
The analyst emphasized that btc spot ETFs “maintained a “real thought” during the “couple of crises” seen this year and suggested that they would continue to beat expectations despite some negative streaks.
In particular, bitcoin spot ETFs have exceeded all expectations this year, recording $35.65 billion in positive net flows throughout 2024, according to Farside Invest. <a target="_blank" href="https://farside.co.uk/btc/#google_vignette” target=”_blank” rel=”noopener nofollow”>data.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="size-large wp-image-359577 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/12/1735654045_29_Bitcoin-ETFs-Experience-End-of-Year-Bleed-with-Outflows-of-387-Million.png" alt="bitcoin, btc, BTCUSDT” width=”980″ height=”524″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSDT_2024-12-30_09-43-42.png?w=1102 1102w, https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSDT_2024-12-30_09-43-42.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSDT_2024-12-30_09-43-42.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSDT_2024-12-30_09-43-42.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSDT_2024-12-30_09-43-42.png?w=750 750w” sizes=”auto, (max-width: 980px) 100vw, 980px”/>
bitcoin's performance in the one-week chart. Source: BTCUSDT on <a target="_blank" href="https://www.tradingview.com/x/gGUcDmyM/" target="_blank" rel="noopener nofollow">TradingView
Featured image from Unsplash.com, chart from TradingView.com
