Spot Bitcoin ETFs Bleed $782M During Christmas Week Amid ‘Holiday Positioning’
- $782M withdrawn from spot Bitcoin ETFs over Christmas week
- Largest single-day outflow hit $276M
- BlackRock’s IBIT and Fidelity’s FBTC led redemptions
- Six-day outflow streak is the longest since early autumn
- Analysts point to seasonal positioning, not panic selling
- Institutional flows expected to normalize in January
Spot Bitcoin exchange-traded funds saw significant withdrawals during Christmas week, with investors pulling $782 million from US-listed products, according to data from SoSoValue. The outflows extended a six-day losing streak, marking the longest period of consistent withdrawals since early autumn.
The heaviest single-day exit occurred on Friday, when ETFs posted $276 million in net outflows. BlackRock’s IBIT accounted for the majority of the losses, shedding nearly $193 million, followed by Fidelity’s FBTC with $74 million in redemptions. Grayscale’s GBTC also continued to experience smaller, ongoing outflows.
Despite the ETF drawdown, Bitcoin’s price remained relatively stable, hovering near the $87,000–$89,000 range throughout the period. However, total net assets across spot Bitcoin ETFs declined to approximately $113.5 billion, down from peaks above $120 billion earlier in December.
Friday’s data capped off six consecutive days of net outflows, with cumulative withdrawals exceeding $1.1 billion over that stretch. The timing raised concerns among some observers about whether institutional demand for Bitcoin was beginning to cool after a year of strong inflows.
Holiday Positioning, Not Structural Weakness
Market participants largely attributed the outflows to seasonal dynamics rather than a fundamental shift in sentiment. Vincent Liu, chief investment officer at Kronos Research, said ETF redemptions during the holiday period are typical, driven by portfolio rebalancing, thinner liquidity and year-end positioning.
According to Liu, institutional desks tend to reduce activity during late December, with flows often resuming once markets return to full staffing in early January. He expects ETF demand to stabilize as capital flows normalize after the holidays.
Looking further ahead, Liu pointed to macro conditions that could support renewed inflows. Rate markets are already pricing in 75 to 100 basis points of Federal Reserve cuts, suggesting easing financial conditions into 2026. He also noted that expanding bank-led crypto infrastructure is lowering friction for large institutional allocators, making it easier for capital to re-enter the market.
Are ETF Outflows Signaling a Bigger Shift?
Not all analysts are as dismissive of the trend. In a recent report, Glassnode said Bitcoin and Ether ETFs have entered what appears to be a sustained outflow phase. Since early November, the 30-day moving average of net flows for US spot Bitcoin and Ether ETFs has remained negative.
Because ETFs are widely viewed as a proxy for institutional sentiment, prolonged outflows could indicate a broader cooling in risk appetite as global liquidity tightens. After a year in which institutions were a major driver of crypto market strength, the shift raises questions about whether the next phase will rely more heavily on organic demand rather than large allocators.
For now, the market appears split between those viewing the Christmas-week withdrawals as routine year-end positioning and those interpreting them as an early signal of waning institutional enthusiasm.
