Spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows during the Christmas week, with investors withdrawing a total of $782 million from these products, as reported by SoSoValue.
The largest single-day withdrawal in this period took place on Friday, when spot Bitcoin (BTC) ETFs recorded $276 million in net outflows. Leading the losses was BlackRock’s IBIT, with almost $193 million leaving the fund, followed by Fidelity’s FBTC at $74 million. Grayscale’s GBTC also saw continued but modest redemptions.
Total net assets across US-listed spot Bitcoin ETFs dropped to approximately $113.5 billion by Friday, down from over $120 billion earlier in December, even while Bitcoin prices remained relatively stable around the $87,000 mark.
Importantly, Friday marked the sixth consecutive day of net outflows for spot Bitcoin ETFs, making it the longest withdrawal streak since early autumn. During this six-day period, cumulative outflows surpassed $1.1 billion.
Related: An explanation of different types of ETFs – Cointelegraph
Temporary Holiday Outflows Expected
Vincent Liu, chief investment officer at Kronos Research, indicated that Bitcoin ETF outflows during the holiday season are typical, attributing them to “holiday positioning” and reduced liquidity rather than a decline in underlying demand.
“As desks resume operations in early January, institutional flows usually return to normal,” he told Cointelegraph.
Looking to the future, Liu anticipates an improvement in conditions in early January as institutions come back and capital flows stabilize. He also mentioned that a potential shift toward Federal Reserve easing in 2026 could further bolster ETF demand, with rate markets already considering cuts of 75 to 100 basis points.
“Rate markets are currently pricing in approximately 75–100 bps of cuts, indicating easing momentum. Additionally, developments in bank-led crypto infrastructure continue to evolve, reducing barriers for large investors,” he noted.
Related: The crypto downturn exposes the gap between VC valuations and market capitalization
Signs of Cooling Institutional Demand in Crypto ETF Outflows
In a recent analysis, Glassnode reported that Bitcoin and Ether ETFs have entered a prolonged outflow phase, suggesting that institutional investors are scaling back their crypto investments. Since early November, the 30-day moving average of net flows into US spot Bitcoin and Ether (ETH) ETFs has remained in negative territory, indicating low participation as overall market liquidity tightens.
Given that ETFs are widely considered a proxy for institutional sentiment, the ongoing outflows indicate a shift away from crypto among major investors after a year when institutions played a key role in driving the market.
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