Spot Bitcoin ETFs Shed Billions

CRYPTO
Spot Bitcoin ETFs Shed Billions

Spot Bitcoin ETFs have experienced their largest outflow streak since Trump’s re-election, shedding $1.5 billion over four days. On December 24 alone, these funds recorded a net outflow of $338 million, led by BlackRock’s IBIT (-$188 million), Fidelity’s FBTC (-$83.16 million), and ARK Invest’s ARKB (-$75.02 million). Bitwise’s BITB was the only fund to report a positive inflow of $8.5 million.

Despite these outflows, Bitcoin ETFs' total net assets remained at $107.53 billion, bolstered by daily fund gains of up to +6.48%. However, this marked a retreat from their December 16 peak of $121.7 billion. The sharpest single-day outflow of $680 million occurred on December 19.

Meanwhile, spot Ethereum ETFs continued attracting inflows, recording $130.76 million on December 23. BlackRock’s ETHA led with $89.51 million in inflows, pushing its assets to $3.51 billion. Ethereum ETFs now hold $12.05 billion in assets, representing 2.94% of the market cap.

FINANCE
Retail Investors Flock to Nvidia

Retail investors have poured nearly $30 billion into Nvidia shares this year, according to Vanda Research, marking a nearly nine-fold increase from 2021. Nvidia has become the most-bought stock by retail traders in 2024, surpassing Tesla, which previously held the title. The chipmaker’s dominance in artificial intelligence has captivated both Wall Street and everyday investors, contributing to its 180% surge this year and earning it a spot in the Dow Jones Industrial Average.

Nvidia now ranks as the second-largest holding in the average retail investor’s portfolio, doubling its weight since early 2024. Investors like Michael MacGillivray and Genevieve Khoury credit Nvidia’s AI leadership and consistent price gains for their confidence in the stock. While recent volatility has cooled inflows, experts like D.A. Davidson’s Gil Luria highlight Nvidia’s remarkable ascent and balanced valuation. Despite challenges, optimism over Nvidia’s innovation and AI leadership suggests continued growth potential.

FINANCE
Japan Stocks Surge Amid Budget News

Asia-Pacific stocks saw mixed trading on Thursday, with Japan leading gains as reports indicated the government would propose a record $735 billion budget for the next fiscal year. The Nikkei 225 rose 1.12% to 8,220.9, while the Topix climbed 1.20% to 2,766.78. The budget aims to address rising social security and debt costs, according to a Reuters draft.

Bank of Japan Governor Kazuo Ueda noted progress toward achieving stable 2% inflation by 2025, supported by wage increases. The 10-year government bond yield edged up to 1.078%, and the yen strengthened against the dollar, fueling speculation of future rate hikes.

Japanese automakers Nissan and Honda gained 6.58% and 3.84%, respectively, following news of merger talks to form the world’s third-largest carmaker. South Korea's Kospi fell 0.44%, impacted by political developments.

Meanwhile, Singapore’s manufacturing output rose 8.5% annually in November but missed expectations. Several markets, including Australia, New Zealand, and Hong Kong, remained closed for Boxing Day. U.S. markets also observed Christmas closures, though Tuesday’s trading kicked off the seasonal Santa Claus rally with gains across major indices.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.