U.S. spot Bitcoin and Ethereum ETFs continued to face net capital outflows ahead of the Christmas holiday, as investors increasingly shift into defensive positioning amid year-end portfolio adjustments.
According to data from SoSoValue, U.S. spot Bitcoin ETFs recorded net outflows of $188.6 million on Tuesday, marking the fourth consecutive session of negative flows. The pressure was concentrated primarily in BlackRock’s iShares Bitcoin Trust (IBIT), which alone saw $157.3 million withdrawn in a single day.
Other major funds also posted net outflows, including:
FBTC (Fidelity)
GBTC (Grayscale)
BITB (Bitwise)
On a weekly basis, spot Bitcoin ETFs experienced $497.1 million in net redemptions, reversing sharply from the $286.6 million in net inflows recorded in the week ending December 12. The shift underscores a clear short-term cooling in institutional demand as the year draws to a close.
Ethereum ETFs Follow the Same Seasonal Pattern
Spot Ethereum ETFs were not spared from the broader risk-off sentiment. The group recorded $95.5 million in net outflows on the same day, a notable reversal from the $84.6 million in net inflows seen previously.
Once again, Grayscale’s ETHE led the decline, with $50.9 million in redemptions, the largest outflow among Ethereum-focused ETFs. Other products also reported moderate but consistent withdrawals, reinforcing the idea that the move is systemic rather than fund-specific.
Analysts Point to Seasonal Factors, Not Structural Weakness
Market analysts widely agree that the current ETF outflows are driven primarily by seasonal year-end factors, rather than a deterioration in long-term investor confidence toward Bitcoin or Ethereum.
Key drivers include:
Profit-taking after a strong year
Portfolio rebalancing
Tax optimization strategies
Thinner liquidity ahead of the holiday period
Several observers also note that the current outflows are modest when viewed in historical context. During the pre-Christmas period in 2024, U.S. spot Bitcoin ETFs experienced more than $1.5 billion in net outflows, a significantly larger drawdown than what is currently unfolding.
This comparison suggests that, while sentiment has cooled temporarily, institutional participation remains relatively resilient.
Diverging Paths: Crypto Softens as U.S. Equities Rally
Interestingly, the ETF outflows occurred against a backdrop of strength in U.S. equity markets.
The S&P 500 rose 0.46%, closing at a new all-time high, supported by fresh economic data showing that the U.S. economy expanded at an annualized rate of 4.3% in the third quarter. Strong growth data has reinforced confidence in corporate earnings and risk assets within traditional markets.
Crypto assets, however, moved in the opposite direction:
Bitcoin fell 0.7% to around $86,931
Ether declined 1.18% to approximately $2,931
The divergence highlights the ongoing sensitivity of digital assets to liquidity conditions and short-term capital flows, particularly when institutional investors temporarily step back.
What the ETF Flows Are Really Telling the Market
Taken together, the data paints a picture of short-term caution rather than long-term capitulation.
ETF outflows into year-end typically reflect tactical decisions, not strategic exits. As liquidity returns after the holiday period and macro expectations reset in early 2026, ETF flows may once again become a key tailwind — especially if rate-cut expectations strengthen.
For now, the market appears to be pausing, not retreating.
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