TLDR
- Spot Bitcoin ETFs saw $782M in outflows during Christmas week.
- BlackRock’s IBIT and Fidelity’s FBTC led the largest withdrawals.
- The cumulative outflows exceeded $1.1B during a six-day streak.
- Experts expect ETF outflows to normalize in early January.
Spot Bitcoin exchange-traded funds (ETFs) experienced substantial outflows totaling $782 million during the Christmas week, as data from SoSoValue reveals. This marked a significant event for the market as Bitcoin prices held steady around $87,000, despite the withdrawals. The outflows stretched over six days, with total withdrawals surpassing $1.1 billion during this period.
Outflows Lead by BlackRock’s IBIT and Fidelity’s FBTC
The largest single-day outflow occurred on Friday, with $276 million withdrawn from the funds. BlackRock’s IBIT saw a major portion of this, losing nearly $193 million, while Fidelity’s FBTC followed with $74 million in withdrawals.
Additionally, Grayscale’s GBTC saw moderate redemptions. As a result of these outflows, the total net assets of US-listed spot Bitcoin ETFs dropped to approximately $113.5 billion, a decrease from over $120 billion at the beginning of December.
Seasonal Factors Behind ETF Outflows
Experts attribute these outflows to “holiday positioning” and reduced liquidity rather than any significant downturn in institutional demand. Vincent Liu, Chief Investment Officer at Kronos Research, explained that the Christmas season often sees a decline in trading activity, as many desks are closed and liquidity tightens.
Liu emphasized that institutional flows typically return to normal in early January when trading desks resume operations. According to him, such outflows are not unusual and are likely temporary.
Liu further mentioned that the broader market dynamics could shift in early 2026, with a potential easing of Federal Reserve policies, which may boost institutional interest in Bitcoin ETFs once again. The rate markets are already pricing in a 75 to 100 basis point reduction, indicating easing momentum in the coming years.
Long-Term Trends Show Cooling Institutional Demand
Despite these temporary outflows, there is also a longer-term trend of cooling institutional demand for crypto-related products. Data from Glassnode indicates that Bitcoin and Ether ETFs have been experiencing sustained outflows since November. The 30-day moving average of net flows into US-listed Bitcoin and Ether ETFs has remained negative, signaling muted participation from institutional investors.
This trend suggests that some large allocators may be pulling back from crypto exposure, after a year in which institutions were the primary market drivers. As ETFs are often seen as a proxy for institutional sentiment, the outflows may reflect a broader shift in institutional strategies. While the Christmas period may have exacerbated these outflows, the overall trend is worth monitoring for future market activity.
