U.S. spot bitcoin and ether exchange traded funds recorded notable outflows ahead of the Christmas holiday as investors adjusted positioning amid thin year end liquidity. Spot bitcoin ETFs saw net outflows of roughly $189 million in a single session, extending a multi day stretch of negative flows. Products tied to Bitcoin were impacted across several issuers, with the largest withdrawals coming from funds managed by major asset managers. On a weekly basis, cumulative outflows reversed inflows seen earlier in December, reflecting portfolio rebalancing rather than a broad shift in long term sentiment. Market participants noted that reduced trading activity and profit taking often distort short term flow data during holiday periods. Price action remained subdued, with bitcoin trading modestly lower over the past day as investors reduced exposure ahead of shortened trading sessions and year end balance sheet adjustments.
Spot ether ETFs also experienced selling pressure, posting close to $96 million in net outflows after recording inflows the previous day. Funds linked to Ethereum followed a similar pattern to bitcoin products, underscoring the seasonal nature of the move. Analysts pointed to thin liquidity and tax related positioning as primary drivers, noting that flows in crypto linked funds have been choppy for several months. Historical comparisons suggest that year end drawdowns in ETF flows are not unusual, particularly after periods of heightened volatility. In contrast to bitcoin and ether products, some alternative crypto ETFs continued to attract modest inflows, highlighting selective risk appetite rather than a broad retreat from digital assets. Market observers cautioned against over interpreting short term ETF movements during a period when institutional activity is typically muted.
The outflows in crypto ETFs occurred alongside strength in traditional financial markets, where U.S. equities closed at record highs following strong economic data. The divergence reflects differing investor objectives, with equity markets benefiting from growth optimism while crypto markets faced temporary de risking. Analysts emphasized that clearer signals are likely to emerge once holiday liquidity returns and normal trading conditions resume. Post holiday economic indicators and renewed institutional participation are expected to play a larger role in shaping early 2026 flows. For now, the recent ETF activity is viewed as part of routine year end positioning rather than a reassessment of crypto’s role within diversified portfolios.
