Bitcoin News Today: Bitcoin ETFs Post $188M in Outflows as Year-End De-Risking Drives Flows

U.S. spot bitcoin and Ethereum ETFs experienced net outflows on Tuesday, the fourth consecutive day of withdrawals, as investors engaged in year-end portfolio adjustments ahead of the Christmas holiday according to the report. The outflows came amid broader market activity, with the S&P 500 hitting a record high after U.S. economic growth data showed a 4.3% annualized expansion in the third quarter. Analysts attributed the moves to seasonal de-risking, thin liquidity, and profit-taking, rather than a significant shift in investor sentiment according to market analysis.

Bitcoin ETFs, including BlackRock's IBIT and Fidelity's FBTC, saw combined outflows of $188.6 million on Tuesday, with IBIT accounting for the largest share at $157.3 million. Ethereum ETFs also posted outflows, with Grayscale's ETHE recording the biggest daily withdrawal of $50.9 million. The outflows marked a reversal from the previous week, when bitcoin ETFs had seen inflows of $286.6 million.

For the week ending December 19, bitcoin ETFs posted net outflows of $497.1 million, while Ethereum ETFs recorded $95.5 million in outflows on Tuesday alone. The trend contrasts with inflows in the previous 24 hours, as investors repositioned ahead of the holiday break. Analysts noted that similar outflows occurred in late December 2024, when bitcoin ETFs saw more than $1.5 billion in net outflows according to historical data.

How Markets Reacted

Bitcoin's price slid 0.7% to $86,931 in the 24 hours leading up to Wednesday, while Ethereum fell 1.18% to $2,931 according to price data. In contrast, U.S. equities closed at record highs, with the S&P 500 climbing 0.46% and the Nasdaq Composite rising 0.57% according to market reports. The broader stock market rally followed positive economic data and continued investor confidence in macroeconomic fundamentals according to financial analysis.

The U.S. economy grew at an annualized rate of 4.3% in the third quarter, slightly above the 3.8% pace in the second quarter. Analysts expect the data to be closely watched in the post-holiday period, with U.S. jobless claims and liquidity developments set to provide direction for early 2026. Meanwhile, stock markets will close early on December 24 and remain closed on December 25 for the Christmas holiday according to market calendar.

What Analysts Are Watching

Market experts caution that the outflows should not be over-interpreted, as they reflect typical year-end positioning rather than a structural bearish shift according to expert analysis. Vincent Liu of Kronos Research and Nick Ruck of LVRG Research both noted that seasonal factors such as tax-loss harvesting and thin liquidity are likely driving the moves according to market commentary. Rick Maeda of Presto Research emphasized that the current outflows are modest compared to previous years according to research findings.

Bitcoin ETFs have posted cumulative net inflows of $57.26 billion, despite the recent outflows. Ethereum ETFs, meanwhile, have a cumulative net inflow of $12.52 billion, with a current net asset value of $17.07 billion. Analysts suggest that institutional demand remains a long-term support for the asset class, even as short-term volatility persists according to market analysis.

Broader ETF Trends

Outside of crypto, broader ETF flows showed mixed results. The SPDR S&P 500 Trust (SPY) posted outflows of $20.1 billion in the week ending December 19, despite the S&P 500 being nearly flat. In the commodities sector, gold and silver ETFs also saw outflows, while Bitcoin and Ethereum ETFs continued to lag according to sector analysis. Communication Services and Technology sector ETFs saw the largest inflows, with the Communication Services Select Sector SPDR Fund (XLC) recording $1.82 billion in inflows.

Risks to the Outlook

The ETF outflows highlight risks to the near-term crypto market, with Bitcoin particularly vulnerable as it struggles to hold key support levels according to technical analysis. Bitcoin is currently trading below $87,500, with technical indicators reinforcing a bearish outlook according to market data. Ethereum and XRP ETFs, while showing some inflows, face challenges in derivatives markets and broader risk-off sentiment according to market reports. Analysts warn that continued outflows could pressure prices further, especially if macroeconomic uncertainties persist according to expert assessment.