Bitcoin and Ethereum ETFs attract significant inflows. (Photo by Drew Angerer/Getty Images)
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Key Takeaways
Crypto markets experienced over $2.5 billion in liquidations over the past three days.
Despite the volatility, institutional interest in Bitcoin and Ethereum ETFs remained strong.
Bitcoin and Ethereum ETFs recorded billions in inflows while the broader crypto market bled.
The crypto market has experienced a dramatic shakeup over the past few days, with over $2.5 billion in liquidations wiping out long positions and sparking sharp corrections in major altcoins.
While retail traders grappled with the turmoil, institutional investors stayed the course, pouring billions into Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), showcasing a striking contrast in market behavior.
Crypto Market Bloodbath Wipes $2.5 Billion
On Dec. 9 alone, the market recorded $1.7 billion in liquidations, comprising $1.55 billion in long positions and $154 million in short positions.
The sell-off continued into Dec. 10, with another $680 million in liquidations, including $481 million in long trades.
While retail traders faced a brutal liquidation event, institutional investors appeared unfazed as BTC and ETH ETFs continued to attract significant inflows.
Bitcoin ETFs recorded their ninth consecutive day of inflows, with $439.56 million added on Dec. 10 alone.
The total assets under management (AUM) for Bitcoin ETFs have now surpassed $107 billion.
BlackRock’s IBIT brought in $295 million, followed by Fidelity’s FBTC, which brought in $210 million.
BlackRock’s IBIT now boasts an AUM of $51 billion, while Fidelity is closing in on Grayscale, which manages $20.41 billion in assets.
Ethereum ETFs also showed surprising strength.
Once considered a lagging product compared to Bitcoin ETFs, Ethereum funds have seen a remarkable turnaround.
Fidelity’s FETH ETF led the inflows with $202 million, followed by BlackRock’s ETHA at $81 million and Grayscale’s Ethereum Mini Trust, adding $25.84 million.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
