US-listed spot Bitcoin exchange-traded funds (ETFs) continued to see heavy withdrawals over the Christmas period, extending a six-day outflow streak that analysts say is more likely driven by seasonal factors than a decline in institutional interest.
Data from SoSoValue shows that investors withdrew a combined $782 million from spot Bitcoin ETFs during Christmas week. The largest single-day outflow occurred on Friday, when the funds recorded $276 million in net redemptions.
BlackRockโs iShares Bitcoin Trust (IBIT) led Fridayโs losses, with nearly $193 million exiting the fund. Fidelityโs Wise Origin Bitcoin Fund (FBTC) followed with $74 million in outflows, while Grayscaleโs Bitcoin Trust (GBTC) continued to post smaller, ongoing redemptions.
As withdrawals mounted, total net assets held by US spot Bitcoin ETFs fell to about $113.5 billion by Friday, down from highs above $120 billion earlier in December. The decline in ETF assets came even as Bitcoin prices remained relatively stable, trading near $87,000.
Friday marked the sixth straight day of net outflows for spot Bitcoin ETFs, the longest withdrawal streak since early autumn. Over the six-day period, cumulative outflows surpassed $1.1 billion.
- Source: SoSoValue
Expectations for ETF Flow Recovery in January
Vincent Liu, chief investment officer at Kronos Research, claimed that it is a seasonal issue and not a lack of demand that the withdrawals were timed as such.
The usual factors that drive such movements, according to Liu, are holiday positioning and low liquidity during the Christmas period. He stated that the flows of ETFs are expected to rebound in early January when the institutional investors come back and market conditions stabilize.
Moving out further into the future, Liu indicated a possible change in monetary policy towards the favor of crypto-linked investment products. He added that the expectation of future easing might be used to support the ETF demand, and therefore the interest-rate markets are already expecting the reduction.
โRates markets are already pricing ~75โ100 bps of cuts, pointing to easing momentum. Next, bank-led crypto infrastructure keeps scaling, reducing friction for large allocators,โ he said.
Broader Implications for Bitcoin and Ether ETF Demand
Despite the view that holiday effects played a key role, some data points to a broader slowdown in ETF inflows. In a recent report, Glassnode said Bitcoin and Ether ETFs have entered a sustained outflow phase, indicating that institutional investors may be reducing crypto exposure.
According to Glassnode, the 30-day moving average of net flows into US spot Bitcoin and Ether ETFs has been trending lower since early November, suggesting a more cautious stance as markets head into year-end.
Whether ETF flows rebound in January or signal a longer-term shift in institutional positioning remains a key focus for market participants in the weeks ahead.
