Spot bitcoin exchange-traded funds (ETFS) recorded heavy inflows during the Christmas week, with investors pulling a combined 2782 million from the product, according to Sosovalue data.
The most significant single-day return during the period came on Friday, when the Spot Bitcoin (BTC) ETFS posted $276 million in net outflows. BlackArch’s IBT led the fund’s exit losses at about $193 million, followed by Fidelity’s FBTC at $74 million. Grayscale’s GBTC also continued to see modest redemptions.
U.S.-listed spot bitcoin ETFs totaled net assets of about $113.5 billion as of Friday, down from earlier peaks of $120 billion in early December, even as bitcoin prices held relatively steady around the $87,000 level.
Notably, Friday marked the sixth day of net outflows for spot bitcoin ETFs, making it the longest withdrawal streak since early fall. During that six-day stretch, gross outflows exceeded $1.1 billion.
Related: Different Types of ETFs, Explained – Cointelegraph
Possibly temporarily over the holidays
Bitcoin ETF outflows during the Christmas period are not unusual, said Vincent Liu, chief investment officer at Kronos Research, pointing to “holiday positioning” and thin liquidity rather than a breakdown in underlying demand.
“As desks return in early January, institutional flows generally reengage and return to normal,” he told Cointelegraph.
Looking ahead, Liu expects conditions to improve in early January as institutions return and capital flows return to normal. He added that a possible shift toward easing by the Federal Reserve in 2026 could further support ETF demand, which the market is already pricing in based on rate cuts of 75 to 100.
“Rates markets are already pricing in ~75–100 bps cuts, pointing to a slowing pace. Next, bank-led crypto infrastructure continues to scale, reducing friction for large allocators,” he said.
Related: The crypto downturn has exposed the gap between VC valuations and market cap
Crypto ETF outflows signal cooling institutional demand
In a recent report, Glassnod stated that Bitcoin and Ether ETFs have entered a steady outflow phase, suggesting that institutional investors are pulling back from crypto exposure. Since early November, the 30-day moving average of net flows into US spot bitcoin and ether (ETH) ETFs has been negative, pointing to muted participation as broader market liquidity tightens.
Because ETFs are widely seen as a proxy for institutional sentiment, the long-term outflow marks a move away from crypto among major allocations after a year in which institutions were a key market driver.
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