Bitcoin ETFs Bounce Back: Liquidity’s Newfound Libido 🚀

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Ah, dear reader, the Bitcoin spot ETFs have returned from their sabbatical of siphoning, amassing a rather impressive £355 million in a week where liquidity finally remembered its manners. One might say the market has donned its dancing shoes once more.

This triumph ended a seven-day outflow streak-a veritable financial exodus of £1.12 billion-that had left investors clutching their portfolios like a Victorian maiden clutching her pearls. A welcome respite, if you’ll pardon the pun.

Spot Bitcoin ETFs Break Seven Day Outflow Streak

Per Farside Investors, the tide has turned for US-listed spot Bitcoin ETFs. After a marathon of withdrawals, they’ve now reversed course, proving even crypto can learn to dance the cha-cha of inflows.

The rebound followed a season of glacial prices and trading volumes so low, one might have mistaken the market for a polar bear’s tea party. But lo! Investors have returned from the sidelines, clutching their wallets with newfound vigor.

BlackRock’s iShares Bitcoin Trust, ever the aristocrat of the crypto crowd, led the charge with £143.75 million. The Ark 21Shares Bitcoin ETF followed with £109.56 million, while Fidelity’s Wise Origin Bitcoin Fund added £78.59 million-enough to make a queen blush.

Bitwise, with a modest £13.87 million, and Grayscale/VanEck, playing the supporting roles, rounded out the ensemble. A veritable West End production of capital flows!

This recovery came after a rather dramatic sell-off on December 26, when £276 million vanished like a magician’s rabbit. One wonders if the funds took the night off to attend a performance of Hamilton.

December, however, remains a frosty month, with total outflows hitting £744 million. Traders, it seems, are still sipping mulled wine and avoiding the market’s icy sidewalks.

Prices may not be dancing higher yet, but the return of inflows suggests investors are now rebuilding positions with the tenacity of a British queue. Not fleeing, just… rearranging the furniture.

Metaplanet, with a flourish worthy of a West End show, added £451 million worth of Bitcoin in Q4. CEO Simon Gerovich, no doubt twirling his mustache, declared it a “strategic move.”

BTC

$87 563

24h volatility:

0.8%

Market cap:

$1.75 T

Vol. 24h:

$36.27 B

Liquidity Outlook Lifts Sentiment Across Crypto Funds

Market watchers, those sages of spreadsheets, linked the ETF revival to global liquidity’s newfound spring in its step. Arthur Hayes, that maestro of markets, opined: “Dollar liquidity likely bottomed in November and is inching higher. Time to pump up the jam!”

$ liq likely bottomed in Nov and is inching higher. It’s time for crypto to pump up the jam.

– Arthur Hayes (@CryptoHayes) December 31, 2025

Hayes, ever the optimist, added that rising liquidity is the champagne of risk assets. One might say he’s never met a bubble he didn’t adore.

Money supply measures, like a well-timed plot twist, are rising across major economies. Financial conditions, once tighter than a corset, are loosening ever so slightly.

And what of the Federal Reserve? Why, they’re set to inject £8 billion into markets like a host offering sherry at a garden party. All in all, a positively festive season for crypto!

The improved mood wasn’t confined to Bitcoin. Ethereum ETFs, after a four-day dalliance with outflows, returned with £67.8 million. XRP ETFs, the party’s quiet star, extended their inflow streak to 30 days with £15 million added. One suspects they’re plotting a sequel.

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2025-12-31 23:03