Bitcoin News Today: Bitcoin ETFs Bleed $782M in 6-Day Outflow Streak as Holiday Liquidity Wanes

Bitcoin spot ETFs suffered significant outflows during the Christmas week, losing $782 million in investor funds, according to data from SoSoValue. The outflows reflect a period of reduced liquidity and investor positioning ahead of the holiday season. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) were the largest contributors to the redemptions, with $193 million and $74 million withdrawn, respectively.

The outflow streak marked the longest since early autumn, with six consecutive days of net redemptions. By Friday, December 26, the total net assets of U.S.-listed Bitcoin ETFs had dropped to approximately $113.5 billion, down from earlier peaks above $120 billion. The pullback occurred even as Bitcoin's price remained stable around $87,000.

Analysts suggest that the redemptions were largely seasonal and tied to reduced trading activity during the holiday period. Vincent Liu, chief investment officer at Kronos Research, noted that such outflows are common in December and typically reverse as markets reopen in early January. He expects capital flows to normalize as institutional investors return after the holidays.

Why the Standoff Happened

The outflow period coincided with a broader trend of reduced demand for crypto-related assets, with institutional investors pulling back from Bitcoin and Ethereum ETFs. According to data from Glassnode, the 30-day moving average of net inflows into U.S. spot Bitcoin and Ether ETFs has remained negative since early November. This pattern suggests that institutional allocators have scaled back their exposure to cryptocurrencies amid a tightening liquidity environment.

Several factors may have contributed to the decline in ETF demand. Bitcoin's price has struggled to reclaim the $90,000 level, and the asset has underperformed compared to traditional safe-havens such as gold and silver. The latter surged during the holiday period, with silver hitting a record $72 an ounce and gold surpassing $4,500. This divergence highlights a shift in market sentiment toward physical assets with long-standing safe-haven status.

Meanwhile, Bitcoin ETFs have experienced prolonged outflows even as the Federal Reserve signaled potential rate cuts in 2026. The U.S. benchmark interest rate remains relatively high, which has kept capital flowing into short-term fixed-income products. Investors appear to be favoring assets that offer higher yields or a more predictable return profile, pushing Bitcoin to the sidelines.

What This Means for Investors

For individual and institutional investors, the recent outflows signal caution in the cryptocurrency market. While Bitcoin ETFs attracted over $56 billion in inflows in 2024, the trend has reversed in 2025. BlackRock's IBIT, the largest Bitcoin ETF by assets under management, continues to attract significant inflows despite the broader outflow trend. However, the fund's price performance remains negative for the year, reflecting the challenges of aligning with the volatile nature of Bitcoin itself.

Market analysts remain divided on the implications of the ETF outflows. Some argue that the redemptions are temporary and will reverse once liquidity returns to normal levels in January. Others see the trend as a sign that Bitcoin has not yet fully transitioned into a mainstream asset class. The ETFs, which are often viewed as a barometer for institutional demand, have failed to provide the kind of sustained support that would push Bitcoin into a new bull phase.

Investors are also watching for regulatory developments in early 2026, particularly the implementation of the EU's DAC8 rules, which will require crypto exchanges to report transaction data to tax authorities. These rules could have a short-term impact on investor behavior, especially among institutional players seeking compliance-ready environments.

As the year-end trading season concludes, the focus for many investors will shift to whether the macroeconomic environment supports a renewed inflow into Bitcoin ETFs. With the Federal Reserve expected to ease monetary policy, the potential for a shift in capital allocation toward crypto remains a key point of discussion. However, for now, the holiday positioning and thin liquidity appear to have dominated the immediate outlook.