Bitcoin News Today: Bitcoin ETFs Post Fourth Consecutive Day of Outflows as Year-End De-Risking Takes Hold

Bitcoin ETF Outflows Amid Holiday Season

Bitcoin spot exchange-traded funds (ETFs) posted $188.6 million in net outflows on Tuesday, marking their fourth consecutive day of negative flows, according to SoSoValue data. The outflows came amid year-end positioning and thin liquidity as investors de-risked ahead of the Christmas holiday. BlackRock's IBIT led the outflows, with $157.3 million leaving the product, while Fidelity's FBTC, Grayscale's GBTC, and Bitwise's BITB also reported outflows.

Meanwhile, Ethereum ETFs also experienced outflows, with $95.5 million leaving the funds on Tuesday. Grayscale's ETHE led the outflows, with $50.9 million exiting the fund. The outflows reflect a broader trend of investors rebalancing portfolios, taking profits, and managing liquidity ahead of the holiday season.

Bitcoin traded down 0.7% over the past 24 hours at $86,931 as of 2:30 a.m. ET Wednesday according to market data. Ether slid 1.18% to $2,931. The declines contrasted with a strong performance in U.S. equities, where the S&P 500 closed at a record high after the U.S. economy expanded at a 4.3% annualized rate in the third quarter.

Market Mechanics Over Sentiment

Analysts have largely attributed the outflows from Bitcoin and Ethereum ETFs to year-end mechanics rather than a shift in investor sentiment. Vincent Liu, CIO of Kronos Research, said the outflows reflect portfolio rebalancing, thin liquidity, and profit-taking. Nick Ruck, director of LVRG Research, shared similar views, noting that seasonal profit-taking, tax-loss harvesting, and thinning holiday liquidity are likely contributing to the outflows.

Rick Maeda of Presto Research said investors should not over-interpret the outflows ahead of Christmas according to market analysis. "Flows have been choppy for the past couple of months, and some degree of year-end de-risking and balance sheet housekeeping is normal, particularly after a volatile fourth quarter," he said. Maeda also pointed to historical comparisons, noting that in the four trading days leading up to Christmas 2024, spot Bitcoin ETFs recorded more than $1.5 billion in net outflows. "Compared with that episode, the current drawdown in flows looks relatively modest," he added.

Institutional and Altcoin Trends

While Bitcoin and Ethereum ETFs faced outflows, XRP and Solana ETFs saw inflows. U.S. spot XRP ETFs recorded $8.2 million in inflows, while spot Solana ETFs added $4.2 million according to the latest data. This divergence highlights the varied institutional interest across the crypto market.

Bitcoin's price struggles were compounded by thin year-end trading conditions and continued outflows from U.S.-listed ETFs according to market analysis. The cryptocurrency failed to reclaim ground above $90,000, trading at $86,966.6 by 2:19 a.m. ET. Market analysts noted that the broader economic environment, including strong U.S. GDP figures, did not provide support for Bitcoin, as traditional safe havens like gold outperformed.

Broader Market Outlook

The U.S. stock markets will close early on December 24 and remain closed on December 25 for the Christmas holiday according to market schedules. Markets will reopen on December 26, with analysts advising traders to watch for economic indicators following the break. Vincent Liu said the real signal for market performance would come post-holiday, particularly with the return of liquidity and the release of U.S. initial jobless claims on December 27.

While Bitcoin's price action remains subdued, the underlying market dynamics suggest a mix of institutional caution and seasonal liquidity management. Analysts continue to monitor how post-holiday developments may shape the trajectory of both crypto and broader markets.

What This Means for Investors

For investors, the recent outflows from Bitcoin and Ethereum ETFs serve as a reminder of the cyclical nature of crypto markets, particularly around major holidays. The outflows are more reflective of year-end portfolio adjustments than a fundamental shift in investor confidence.

However, the inflows into XRP and Solana ETFs indicate that institutional investors remain active in the space, seeking exposure to altcoins with strong utility and regulatory clarity. As the market moves into the new year, the focus will shift to how well these funds hold up in a potentially more liquid environment.

Investors should also consider the broader economic indicators that will emerge after the Christmas break, including U.S. jobless claims and other macroeconomic data. These signals may offer insights into the direction of both crypto and traditional markets in early 2026.