Lower Liquidity and Risk Reduction Drive ETF Withdrawals in Late December
Spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced notable outflows on Dec. 24 as investors reduced exposure ahead of the Christmas holiday. The pullback reflects seasonally lower liquidity and a defensive shift in positioning, rather than a clear change in long-term sentiment toward crypto assets.
Data shows Bitcoin spot ETFs recorded approximately $175 million in net outflows on the day. The largest single withdrawal came from BlackRock’s IBIT fund, which saw $91.37 million exit. This was followed by Grayscale’s GBTC with $24.62 million in outflows, continuing a trend of cautious short-term rebalancing among institutional investors.
Ethereum-focused ETFs were not immune. Ether spot ETFs posted roughly $57 million in net outflows, with Grayscale’s ETHE accounting for $33.78 million of that total. ETHE’s cumulative historical outflows have now surpassed _ $5 billion_, highlighting persistent rotation away from higher-fee legacy products.
However, flows were not uniformly negative. Grayscale’s Ethereum Mini Trust ETF attracted $3.33 million in inflows, pushing its cumulative inflows to over $1.5 billion, signaling selective investor demand even during thin trading conditions.
Such movements are common around major holidays. Reduced trading desks, wider spreads, and cash preservation can amplify ETF flow data without signaling outright bearishness.
While holiday-driven outflows underscore crypto’s sensitivity to liquidity cycles, ETF activity continues to reflect nuanced institutional strategies rather than broad risk-off sentiment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.