Spot Bitcoin exchange traded funds in the United States recorded sharp outflows during Christmas week, as investors pulled nearly $782 million from the products, according to data from SoSoValue. The withdrawals marked a continuation of a broader year end trend, with spot Bitcoin ETFs posting net outflows for six consecutive trading days, their longest losing streak since early autumn.
The largest single day of selling came on Friday, when investors withdrew about $276 million from spot Bitcoin ETFs. BlackRock’s IBIT accounted for the bulk of the losses, with close to $193 million exiting the fund. Fidelity’s FBTC followed with roughly $74 million in redemptions, while Grayscale’s GBTC continued to see smaller but steady outflows.
Despite the selling pressure, Bitcoin prices remained relatively stable, hovering near the $87,000 level throughout the period, suggesting that ETF flows were driven more by calendar effects than by panic selling.
ETF assets dip but remain historically high
As a result of the sustained withdrawals, total net assets across US listed spot Bitcoin ETFs fell to around $113.5 billion by the end of the week. That figure is down from levels above $120 billion seen earlier in December, though still significantly higher than most of the year.
Market participants note that the decline in assets has not been accompanied by a major breakdown in Bitcoin’s spot price. This divergence has reinforced the view that the outflows reflect portfolio rebalancing and profit taking rather than a loss of conviction in Bitcoin as an asset.
Over the six day stretch, cumulative outflows exceeded $1.1 billion, highlighting how quickly liquidity can thin out during holiday periods when many institutional desks are operating with reduced staff or are temporarily inactive.
Analysts point to seasonal factors
Vincent Liu, chief investment officer at Kronos Research, said the Christmas week withdrawals should be viewed in the context of seasonal behavior rather than a signal of weakening institutional demand.
According to Liu, holiday positioning often leads funds to reduce exposure, lock in gains, or manage year end balance sheets. Thinner liquidity during late December can also amplify the size of daily flows, making the outflows appear more dramatic than they might be during normal trading weeks.
Spot Bitcoin ETFs performance in December. Source: SoSoValue
Liu added that institutional participation typically resumes in early January, when desks return and capital flows begin to normalize. Historically, the first weeks of the new year have often seen renewed activity in crypto related products, including ETFs.
Interest rate outlook and infrastructure seen as tailwinds
Looking beyond the holiday period, Liu said the broader macro backdrop could still support spot Bitcoin ETF demand over the medium term. He pointed to expectations that the Federal Reserve may shift toward easing in 2026, with rate markets already pricing in roughly 75 to 100 basis points of cuts.
Lower interest rates tend to improve risk appetite and make alternative assets more attractive relative to cash and fixed income. In addition, Liu noted that bank led crypto infrastructure continues to expand, helping reduce operational friction for large allocators such as pension funds and asset managers.
Improved custody solutions, clearer compliance frameworks, and deeper liquidity are gradually making crypto exposure more accessible to traditional institutions, even if short term flows fluctuate.
Glassnode flags broader ETF cooling
Not all observers are convinced the outflows are purely seasonal. In a recent report, on chain analytics firm Glassnode said that both Bitcoin and Ether ETFs appear to have entered a more sustained outflow phase.
Since early November, the 30 day moving average of net flows into US spot Bitcoin and Ether ETFs has remained negative, according to Glassnode. This trend suggests that institutional participation has softened as broader market liquidity tightens and investors reassess risk exposure after a strong year for crypto assets.
Because ETFs are widely seen as a proxy for institutional sentiment, prolonged outflows may indicate that large allocators are taking a more cautious stance. After playing a major role in driving market momentum earlier in the year, institutions now appear more selective, waiting for clearer macro signals before increasing exposure again.
For now, the Christmas week data reflects a market caught between short term seasonal pressures and longer term structural adoption, with early January flows likely to offer clearer direction.
