TL;DR
- Bitcoin ETFs experience historic outflows of more than $1.5 billion in just four days.
- MicroStrategy and other major companies continue to accumulate Bitcoin despite the drop in investment funds.
- Bitcoin miners and companies like Tesla maintain their acquisition strategies in a volatile market.
The Bitcoin exchange-traded funds (ETFs) approved by the U.S. Securities and Exchange Commission (SEC) earlier this year have seen significant capital outflows in recent days. More than $1.5 billion has exited these funds in just four days, with a major pullback recorded on December 19 when $671.9 million was withdrawn, marking the largest daily outflow on record.
According to data from Farside Investors, this massive withdrawal ended a 15-day streak of consecutive positive inflows, coinciding with a widespread sell-off in the cryptocurrency market. During this correction, Bitcoin’s (BTC) price dropped from over $100,000 to a low of $93,000, although it later recovered. The market’s volatility, along with uncertainties surrounding regulations, has caused many investors to reconsider their positions.
A Historic Decline in the Bitcoin Market
This fund exodus surpasses the previous record for outflows set in May, when the cryptocurrency saw a 10% drop in a week, resulting in $564 million in outflows. In the following days, Bitcoin ETFs continued to experience significant withdrawals: $277 million on December 20, $226.5 million on December 23, and $338.4 million on December 24. These figures highlight the growing concern among investors amid market instability and the regulatory environment.
However, this negative trend contrasts with recent investments from companies like MicroStrategy, which acquired an additional 5,262 bitcoins at an average price of $106,662 per BTC, costing the company around $561 million. With this purchase, MicroStrategy’s total Bitcoin holdings surpassed 400,000 BTC, reflecting its ongoing strategy of accumulating the leading cryptocurrency. This approach has inspired other companies, such as Marathon Digital Holdings, which holds 44,394 BTC valued at approximately $4.1 billion, making it the second-largest corporate holder of Bitcoin. This trend demonstrates the increasing confidence of certain corporate investors, despite short-term market fluctuations.
