- The BTC ETF recorded a withdrawal of $60.48 million on December 8.
- Ethereum funds have recently expanded their momentum with $35.49M inflows.
- XRP and Solana ETF closed higher yesterday amid prevailing demand.
The digital token space remains volatile ahead of the Federal Reserve’s interest rate decision on December 10th.
Cryptocurrency exchange-traded funds, essential for gauging institutional appetite for these risky assets, confirm the current uncertainty.
Despite IBIT’s gains, Bitcoin ETF is experiencing outflows.
Interest in the BTC ETF remained negative yesterday, with the product experiencing net outflows amounting to $60.48 million (SoSoValue data).
There were significant withdrawals as investors reacted to the weekend’s lackluster performance across cryptocurrency markets.
Bitcoin failed to break above $92,000 again and is currently trading at $90,150.
But Monday wasn’t a gloomy day for all BTC ETF issuers.
BlackRock demonstrated its resilience and dominance as IBIT attracted $28.76 million in inflows.
While funds such as Graycale’s GBT (-44.03M) and Fidelity’s FBTC (-39.44M) saw significant withdrawals on December 8, IBIT’s steady showing suggests that profit taking rather than interest conversion likely triggered mixed flows into Bitcoin.
Ethereum ETF turns positive
While Bitcoin plummeted on December 8, the Ethereum exchange-traded fund turned positive with inflows of $35.5 million.
Notably, the fund recorded significant exits in the previous two sessions on December 4 (-41.5M) and December 5 (-75.2M).
In fact, Ethereum has been gaining investor attention recently following the Fusaka upgrade, which aims to provide improved speed, scalability, and reduced costs for the Ether-based Layer 2 platform.
Moreover, these inflows indicate that investors see Ethereum as a legitimate token for portfolio diversification beyond Bitcoin.
In fact, the second-largest cryptocurrency by value is seeing renewed interest from institutional players.
For example, BlackRock is seeking SEC approval for its new Ether Trust ETF, ETHB.
The proposed product differs from BlackRock’s popular ETHA trust in that the staking Ether trust tracks the performance of Ethereum and includes incentives earned from the trust’s staked Ether.
ETH is trading at $3,124 after rising more than 10% over the past seven days.
Solana ETF is seeing steady demand
Solana spot products closed the previous day with an inflow of $1.2 million.
Although these numbers are still modest, they reflect steady demand for SOL ETFs.
Monday’s influx extended the winning streak to three days and demonstrated a preference for these products despite further disruption.
The Solana exchange-traded fund has raised about $639 million since launching in late October.
Meanwhile, SOL price is hovering around $133, down 2% in the last 24 hours.
XRP ETF Steals the Show
Ripple’s cryptocurrency asset outperformed its peers on the day, with net inflows of $38.04 million on December 8.
Grayscale leads the way, with GXRP raising more than $810,000 in new capital on Monday.
Additionally, XRP exchange-traded funds from Canary, Bitwise, and Franklin also recorded notable daily gains.
Regulatory clarity and XRP’s unique utility in cross-border transactions have increased the altcoin’s appeal among institutional investors.
Nonetheless, ETF performance on December 8 sends a clear message.
Investors are now diversifying into other cryptocurrencies besides Bitcoin.
As the cryptocurrency industry gains more and more acceptance in mainstream finance, altcoin ETFs are gaining attention due to their additional benefits.