Crypto Liquidations Hit $2.5B, But Bitcoin, Ethereum ETF Inflows March On

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.

Among the hardest-hit tokens was Ripple (XRP), which experienced extreme volatility.

On Dec. 9, XRP plunged from $2.33 to $2.02 within minutes before rebounding to $2.21.

The following day, it dropped further to a monthly low of $1.99, recovering later to trade above $2.35.

Other altcoins, including Hedera (HBAR) and Solana (SOL), mirrored this price turbulence, further amplifying the liquidations.

 

The crypto market saw $2.5 billion in liquidations. Source: Coinglass

Bitcoin, Ethereum ETF Stays Firm Amid Market Chaos

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.

On Dec. 10, Ethereum ETFs recorded $305.74 million in inflows, pushing the total past $1 billion over the past week.

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.