TLDR

  • Spot Bitcoin ETFs recorded $782 million in outflows over the Christmas week.
  • BlackRock’s IBIT and Fidelity’s FBTC accounted for the largest withdrawals.
  • Cumulative outflows topped $1.1 billion across a six-day stretch.
  • Experts predict ETF outflows will normalize in early January.

Spot Bitcoin exchange-traded funds (ETFs) faced significant outflows totaling $782 million during the Christmas week, according to data from SoSoValue. This marked a notable market event as Bitcoin prices held steady around $87,000, despite the withdrawals. The outflows extended over six days, with total withdrawals exceeding $1.1 billion in this period.

Outflows Led 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The largest single-day outflow occurred on Friday, with $276 million withdrawn from the funds.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 bore 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 start 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 activity typically returns 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 broader market dynamics could shift in early 2026, with a potential easing of Federal Reserve policies that 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 Indicate Cooling Institutional Demand

Despite these temporary outflows, there is also a longer-term trend of waning 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.