Seasonal liquidity thinning and year-end portfolio adjustments drive short-term withdrawals
U.S. spot Bitcoin and Ether exchange-traded funds (ETFs) recorded notable outflows ahead of the Christmas holiday, reflecting seasonal de-risking rather than a structural shift in institutional sentiment.
U.S. spot Bitcoin ETFs posted $188.6 million in net outflows, marking the fourth consecutive day of negative flows. The largest share of withdrawals came from the biggest funds, with one leading product alone seeing more than $157 million exit in a single session. On a weekly basis, Bitcoin ETFs logged $497.1 million in net outflows, reversing the inflows seen earlier in December.
Spot Ethereum ETFs followed a similar pattern, recording $95.5 million in net outflows after posting inflows the previous day. One major Ether fund accounted for over $50 million, the largest single-day outflow among Ethereum ETFs this week.
Market participants say the moves are largely driven by thin holiday liquidity, portfolio rebalancing, and profit-taking into year-end. Analysts caution against over-interpreting the data, noting that ETF flows have been choppy for months and that seasonal volatility is common after an active fourth quarter.
Notably, a comparable period last year saw over $1.5 billion in Bitcoin ETF outflows ahead of Christmas, making the current drawdown relatively modest. Meanwhile, U.S. equities moved in the opposite direction, with major stock indices closing at record highs, supported by stronger-than-expected economic growth data.
Most observers agree the clearer signal will emerge after the holidays, once liquidity returns and early-year macro indicators begin to shape institutional positioning for 2026.
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