U.S. Bitcoin and Ethereum ETFs See Outflows Ahead of Christmas

U.S.-listed spot Bitcoin and Ethereum exchange-traded funds recorded fresh net outflows on Tuesday, as thin holiday liquidity and year-end portfolio adjustments weighed on investor flows ahead of Christmas.

Market participants largely framed the moves as seasonal positioning rather than a shift in long-term conviction.

Key takeaways

• Spot Bitcoin ETFs saw $188.6 million in net outflows, extending a four-day streak of negative flows.
• Ethereum ETFs also turned negative, logging $95.5 million in net outflows.
• Analysts attribute the moves to year-end rebalancing, profit-taking, and thin holiday liquidity.
• XRP and Solana ETFs bucked the trend, posting modest inflows.

According to data from FarSide Investors, Spot Bitcoin ETFs shed $188.6 million on Tuesday. BlackRock’s IBIT accounted for the bulk of the outflows, with $157.3 million exiting the fund. Products from Fidelity Investments, Grayscale, and Bitwise also posted net redemptions.

On a weekly basis, spot Bitcoin ETFs recorded $497.1 million in net outflows last week, reversing the $286.6 million in inflows seen in the prior period.

Ethereum ETFs followed a similar path. After recording inflows a day earlier, spot Ether ETFs saw $95.5 million exit on Tuesday. Grayscale’s ETHE led the decline with $50.9 million in outflows, marking the largest single-day redemption among Ethereum products.

Analysts Point to Seasonal Mechanics

Market observers stressed that the ETF outflows are likely driven by calendar effects rather than deteriorating sentiment. Vincent Liu, chief investment officer at Kronos Research, said the moves reflect year-end mechanics such as portfolio rebalancing, profit-taking, and reduced liquidity.

Nick Ruck, director at LVRG Research, echoed that view, noting that tax-loss harvesting and de-risking ahead of the holidays often pressure flows during late December.

Rick Maeda, research associate at Presto Research, cautioned against reading too much into the recent data. He pointed out that ETF flows have been volatile for months and that balance sheet housekeeping after a turbulent fourth quarter is typical.

Maeda also highlighted a historical comparison: in the days leading up to Christmas 2024, spot Bitcoin ETFs recorded more than $1.5 billion in net outflows as Bitcoin pulled back from an all-time high. Relative to that episode, he said, the current drawdown appears far more modest.

Price Action and Diverging ETF Flows

Bitcoin traded about 0.5% lower over the past 24 hours, changing hands near $87,000. BTC’s Market Cap stands at $1.73 Trillion.

Not all crypto ETFs saw redemptions. Spot XRP ETFs attracted $8.2 million in inflows, and spot Solana ETFs logged $4.2 million in net inflows, suggesting selective interest even as broader market activity slows.

Overall, the data point to a familiar year-end pattern: cautious positioning, lighter liquidity, and short-term flow volatility — dynamics that many analysts expect to fade once markets reopen fully in the new year.

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