Fed Rate Cut Triggers Mixed Crypto ETF Performance as Bitcoin, XRP ETFs Post Inflows, Ether Outflows

US Bitcoin spot ETFs widened their positive performance on December 12, 2015, displaying an indicator of optimism in the crypto funds after weeks of outflows. According to data shared today by market analyst Wu Blockchain, Bitcoin ETFs registered net inflows worth $49.16 million on Friday, adding on top of other daily positive flows experienced during the week.

Despite being a mild capital inflow, this was a positive performance – the third consecutive day of gains for Bitcoin ETF products this week. As per data sourced from SoSoValue, Bitcoin ETFs experienced an inflow of $237.44 million on Thursday and also witnessed another inflow valued at $150 million on Tuesday.

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Crypto Enthusiasm Weak Despite Fed Rate Cuts

On Friday, yesterday, Bitcoin funds further pulled in a few, but a positive flow of $49.16 million, as disclosed by metrics released today by Wu Blockchain. Out of the 11 US-based Bitcoin ETFs, BlackRock’s IBIT was the only product that attracted net inflows, showing its prominent strength. Without it, the entire Bitcoin ETF sector could have seen a net outflow during the day.

Despite significant outflows noticed over the past weeks, the fundamentals behind Bitcoin funds and other crypto ETFs remain intact. Generally, crypto ETFs continue to see weak demand as the Fed’s cautious December interest rate cut failed to impress cryptocurrency investors.

The Federal Reserve’s interest rate cut by 25 basis points, announced on Wednesday this week, did not bolster crypto prices as the institution’s cautionary comment of a likely pause next year affected the risk appetite of digital asset investors. This expanded the consolidation phase for most major crypto assets like Bitcoin and Ethereum, which today trade at $90,142 and $3,118, up 0.1% and 2.0% in the past week, respectively.  

Ethereum and XRP Funds Flow and Market Implications

Other important developments in the cryptocurrency exchange-traded fund industry include capital outflows from Ethereum ETFs and money inflows into XRP ETFs on Friday.

As highlighted on the data reported by Wu Blockchain, Ethereum ETFs posted net outflows of $19.41 million on December 12, with BlackRock’s ETHA was the only Ether-based fund that experienced funds inflow of $23.2469 million during the day. Despite the outflows on Friday, spot Ethereum ETFs reported over $250 million in net inflows this week after weeks of persistent outflows, an event that market analysts describe as institutional demand remaining strong amid recent heightened fluctuations on the larger crypto market.

Lastly, as identified by the data, XRP spot ETFs attracted net inflows of $20.17 million on Friday, marking the nineteenth consecutive day of positive capital flow into the funds. Despite the impressive streak, XRP currently hovers at $2.03 after falling 18.6% in the past 30 days.