Bitcoin ETFs Face $175 Million Outflows While Solana and XRP Gain
Bitcoin ETFs saw $175M in outflows on Dec 24, led by BlackRock’s IBIT, while Solana and XRP ETFs gained $1.48M and $11.93M, respectively.
On December 24, U.S. spot Bitcoin ETFs experienced net outflows of $175 million. BlackRock’s IBIT ETF led the outflows, with $91.37 million withdrawn. At the same time, Solana and XRP ETFs saw inflows of $1.48 million and $11.93 million, respectively.
These shifts reflect cautious sentiment among institutional investors amid price fluctuations and lower trading volumes during the holiday season.
Bitcoin ETFs Face Significant Outflows
On December 24, U.S. spot Bitcoin ETFs recorded a total of $175 million in net outflows.
The largest outflow came from BlackRock’s IBIT Bitcoin ETF, which saw $91.37 million withdrawn. Bitcoin’s price fluctuations and reduced trading volumes likely contributed to this cautious behavior among institutional investors.
Many traders opted to reduce their exposure to Bitcoin due to uncertainty in the market.
The outflows from Bitcoin ETFs highlight short-term caution among investors. Some analysts believe that profit-taking after Bitcoin’s price surge earlier in the month could be a key reason.
While the outflows were significant, many market participants view them as a temporary adjustment rather than a long-term trend. Traders are likely waiting for more favorable conditions before re-entering the market.
Solana and XRP ETFs See Positive Inflows
In contrast to Bitcoin’s outflows, Solana and XRP ETFs recorded inflows on December 24. Solana’s spot ETFs saw inflows of $1.48 million, while XRP ETFs gained $11.93 million.
These inflows suggest that investors are diversifying their portfolios, seeking alternatives to Bitcoin amid its volatility. Solana and XRP have shown resilience, attracting interest from both institutional and retail investors.
The inflows into Solana and XRP indicate growing confidence in these altcoins. As Bitcoin faces short-term challenges, investors may be turning to other cryptocurrencies with more stable performance.
Both Solana and XRP have been relatively less volatile compared to Bitcoin, which has led to increased demand for their ETFs.
Related Reading: Bitcoin Faces Resistance at $88K After Losing Key Support Level
Institutional Investors Maintain Cautious Optimism
Despite the recent outflows from Bitcoin ETFs, institutional sentiment remains cautious but optimistic. The withdrawals from Bitcoin funds appear to be part of a normal market adjustment rather than a loss of confidence in crypto.
Investors are focusing on long-term adoption while waiting for clearer signals in the market. Some analysts suggest that market participants are preparing for fresh opportunities once volatility subsides.
Crypto ETFs remain a critical indicator of institutional interest. Many investors continue to monitor ETF flows closely as they assess future market trends.
While the holiday season has led to reduced trading volumes, institutional investors are expected to remain engaged with crypto products in the long run. As the market stabilizes, more strategic investments may emerge, driving further interest in cryptocurrencies.
The post Bitcoin ETFs Face $175 Million Outflows While Solana and XRP Gain appeared first on Live Bitcoin News.
You May Also Like
Missed Avalanche And Arbitrum? Buy APEMARS at $0.00006651 – Your Next 100x Crypto in the Crypto Bull Runs
Pastor Involved in High-Stakes Crypto Fraud
Federal Reserve expected to slash rates today, here's how it may impact crypto
Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more