Data from SoSoValue shows that investors pulled $782,000,000 from Spot Bitcoin Exchange-Traded Funds (ETFs) during the Christmas Week.
The largest single-day withdrawal in the entire period occurred When is the best time to buy Bitcoin?BTC) ETFs posted $276 million in net outflows. BlackRock IBIT, with a loss of nearly $193 millions dollars in the fund was the largest. Fidelity FBTC followed at $74,000,000. Grayscale’s GBTC has also seen modest redemptions.
The total net asset value of US listed spot Bitcoin ETFs dropped to approximately $113.5 billion on Friday. This is down from peak levels above $120 billion in early December. Bitcoin prices remained relatively stable at around $87,000.
This is the longest withdrawal streak for Bitcoin spot ETFs since the early fall. This six-day period saw cumulative outflows of over $1.1 billion.
Related: Different types of ETFs, explained – Cointelegraph
Outflows during holidays likely to be temporary
Vincent Liu said that Bitcoin ETF withdrawals over the holiday season are common. “holiday positioning” It is more likely to be a thinner liquid than a decline in demand.
“As desks return in early January, institutional flows typically re-engage and normalize,” He told Cointelegraph.
Liu anticipates that conditions will improve by early January, as capital flows and institutions normalize. The Federal Reserve could ease its stance in 2026, he said. Rate markets are already pricing 75 to 100 basis point cuts.
“Rates markets are already pricing ~75–100 bps of cuts, pointing to easing momentum. Next, bank-led crypto infrastructure keeps scaling, reducing friction for large allocators,” “He said”
Related: Crypto downturn reveals gap between VC valuations and market cap
Crypto ETF outflows signal cooling institutional demand
Glassnode reported in a report that Bitcoin ETFs and Ether have reached a phase of sustained outflow, which suggests institutional investors are pulling back Crypto exposure is not recommended. The 30-day moving Average of Net flows into US Spot Bitcoin and Ether since early November (ETHETFs have remained in the negative territory, suggesting a lack of participation due to tightening market liquidity.
The ETFs, which are viewed by many as an indicator of institutional sentiments, have been exhibiting a long-term outflow. This indicates a move away from cryptocurrency among the large investors after a market year where institutions were major drivers.
Magazine: Bitcoin may dip to $65K in 2026, Clarity Act speculation grows: Hodler’s Digest
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Source: cointelegraph.com
