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Spot Bitcoin ETFs See Record Withdrawals as CME Futures Premium Signals Weaker Demand
The exchange-traded funds lost a record $671.9 million as bitcoin extended post-Fed losses below $100,000.
Updated Dec 20, 2024, 12:42 p.m. Published Dec 20, 2024, 9:32 a.m.
What to know:
- Investors pulled a record $671.9 million from the 11 spot bitcoin ETFs on Thursday, snapping a 15-day winning trend.
- The annualized premium in one-month CME futures dipped below 10% in a sign of waning short-term demand.
The U.S.-listed spot exchange-traded funds (ETF) registered record outflows Thursday and the CME futures premium dropped into single digits in a sign of weakening short-term demand.
Investors ended a 15-day streak of inflows by withdrawing a net $671.9 million from the 11 ETFs, the largest single-day tally since their inception on Jan. 11, according to data from Coinglass and Farside Investors.
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Fidelity's FBTC and Grayscale's GBTC led the outflows, losing $208.5 million and $188.6 million, respectively. Other funds registered outflows, too, and BlackRock's IBIT scored its first zero in several weeks.
Bitcoin extended its post-Fed losses Thursday, falling to $96,000, down nearly 10% from the record high of $108,268 seen early this week.
The bearish sentiment was mirrored in the derivatives market, where the annualized premium in the CME's regulated one-month bitcoin futures fell to 9.83%, the lowest in over a month, according to data source Amberdata.
A decline in the premium means cash-and-carry arbitrage bets involving a long position in the ETF and a short position in the CME futures yield less than they did earlier. As such, the ETFs may continue to see weak demand in the short-term.
Ether ETFs also registered a net outflow, $60.5 million. That's the first since Nov. 21. Ether has dropped 20% since levels above $4,100 before Wednesday's Fed decision.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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