On December 20, 2024, Bitcoin spot exchange-traded funds (ETFs) experienced an unprecedented net outflow of $671.9 million, marking the highest withdrawal since their inception in January. The Grayscale Bitcoin Trust (GBTC) alone faced a capital loss exceeding $208.6 million, closely followed by the ARK 21Shares Bitcoin ETF, which lost approximately $108.4 million. This significant outflow coincided with a downturn in Bitcoin's price, which fell below $93,000, down 9.2% in a 24-hour period. Major market maker Wintermute noted that the crypto market mirrored declines in equity and bond markets as investors opted to decrease their risk exposure, particularly before the low-liquidity holiday season. Analysts suggest that the upcoming Federal Open Market Committee meeting may trigger further market fragility. While current conditions appear bearish, some experts predict that the anticipated departure of SEC Chair Gary Gensler in January could serve as a catalyst for a future Bitcoin bull run.

Source 🔗