Spot Bitcoin exchange-traded funds (ETFs) faced substantial outflows over the Christmas week, with investors withdrawing a total of $782 million, as reported by SoSoValue. The most notable single-day withdrawal occurred on Friday, when spot Bitcoin (BTC) ETFs recorded net outflows of $276 million. Leading this decline was BlackRock”s IBIT, which saw nearly $193 million exit, followed closely by Fidelity”s FBTC with $74 million in outflows. Grayscale”s GBTC also experienced continued modest redemptions.
As a result, total net assets of US-listed spot Bitcoin ETFs dropped to approximately $113.5 billion by Friday, down from over $120 billion earlier in December. This decline occurred despite Bitcoin prices maintaining relative stability near the $87,000 mark. Notably, Friday”s figures marked the sixth consecutive day of net outflows from these ETFs, establishing the longest withdrawal streak since early autumn. Cumulatively, outflows during this six-day period surpassed $1.1 billion.
Vincent Liu, chief investment officer at Kronos Research, commented on the situation, explaining that such outflows during the holiday season are not uncommon. He attributed the withdrawals to seasonal “holiday positioning” and reduced liquidity rather than a fundamental weakening in demand. He noted, “As desks return in early January, institutional flows typically re-engage and normalize.”
Looking ahead, Liu anticipates improved conditions in early January as institutional investors return and capital flows stabilize. He also mentioned that a potential shift towards easing monetary policy by the Federal Reserve in 2026 could further bolster ETF demand, with current rate markets already signaling expectations for 75 to 100 basis points of cuts.
Recent analysis from Glassnode indicates that both Bitcoin and Ether ETFs have entered a prolonged outflow phase, suggesting that institutional investors are retreating from crypto exposure. The 30-day moving average of net flows into US spot Bitcoin and Ether (ETH) ETFs has remained negative since early November, indicating diminished participation in the market as liquidity continues to tighten.
As ETFs are widely regarded as a barometer of institutional sentiment, these ongoing outflows highlight a significant shift away from crypto investments among large allocators, following a year where institutional participation was a key driver in the market.
