Bitcoin News Today: Holiday Outflows Pressure Bitcoin and Ether ETFs as Smaller Cryptos Attract Capital

Holiday Week Weighs on Bitcoin and Ether ETFs as XRP and Solana ETFs Remain Resilient

Crypto ETF flows have taken a downturn as the holiday season progressed, with Bitcoin and Ether ETFs recording significant outflows. U.S.-listed Bitcoin and Ethereum ETFs faced net outflows of approximately $1.13 billion during the mid-December period, with top funds like BlackRock's IBIT and Bitwise's BITB leading the withdrawals according to the analysis. The pullback followed a brief rebound in early December, highlighting the volatile nature of crypto ETFs amid year-end positioning. Meanwhile, XRP and Solana ETFs held firm, maintaining inflows despite the broader market caution as reported.

The outflows came as investors took profits and reduced exposure to high-cap crypto positions, causing Bitcoin and Ether prices to drift lower. Bitcoin dipped below $90,000 after touching $94,000 earlier in the month, while Ether hovered near $3,200. The mid-December pullback signaled a period of consolidation for large, liquid ETFs as market participants reassessed their allocations. Smaller funds like Fidelity's Bitcoin ETF recorded modest inflows, but the overall trend remained bearish.

Investors are navigating a mix of macroeconomic factors and shifting market sentiment, which are influencing ETF flows. Analysts have attributed the outflows to year-end portfolio rebalancing, tax-loss harvesting, and reduced liquidity during the holiday season. The pullback does not necessarily reflect a loss of long-term confidence in crypto, as some view the outflows as a temporary market adjustment. However, the continued outflows highlight crypto's role as a risk asset sensitive to liquidity shifts.

Why the Standoff Happened

Bitcoin ETFs recorded a fifth consecutive day of outflows in the days leading up to Christmas, with net outflows totaling $175.29 million. BlackRock's IBIT ETF alone accounted for the largest share of the exit, losing $91.37 million. The selling pressure was broad-based, with nearly all major ETFs experiencing outflows. Grayscale's GBTC and Fidelity's FBTC also saw substantial exits. While trading activity remained elevated at $31.57 billion, total net assets declined slightly as reported.

Ethereum ETFs also faced a similar trend, posting a net outflow of $52.70 million in the same period. Grayscale's ETHE led the outflows with a $33.78 million exit, followed closely by BlackRock's ETHA, which lost $22.25 million according to market data. Despite the broader trend, the Ether Mini Trust managed to attract a modest $3.33 million in inflows. The pattern of outflows reflects a common seasonal dynamic as traders reduce exposure ahead of the holidays as analysts note.

In contrast, XRP ETFs continued to attract inflows, adding $11.93 million on December 24. Franklin's XRPZ led the charge with nearly all of the inflow activity, while Canary's XRPC contributed a smaller $794K addition. Solana ETFs remained in positive territory as well, though with more modest gains of $1.48 million according to market data.

How Markets Reacted

The ETF outflows had a visible impact on crypto prices, with both Bitcoin and Ether showing signs of correction. Bitcoin's price declined to $86,931, while Ether fell to $2,931 as of early December 27 as reported. The pullback came amid broader market movements, with U.S. equities posting record highs on the S&P 500. The divergence between crypto and traditional markets underscored crypto's sensitivity to macroeconomic dynamics and liquidity shifts as market analysis shows.

Analysts have emphasized that the ETF outflows should not be over-interpreted as a signal of waning investor confidence. Vincent Liu of Kronos Research noted that the outflows reflect year-end mechanics rather than a fundamental shift in sentiment. Nick Ruck of LVRG Research added that seasonal factors like tax-loss harvesting and thin liquidity were likely contributing to the outflows. Both experts highlighted that the drawdown in ETF flows was relatively modest compared to previous holiday periods as analysts observed.

What Analysts Are Watching

Looking ahead, market participants are closely monitoring liquidity conditions and price-led flows after the holidays. Vincent Liu suggested that liquidity returning to the markets and U.S. initial jobless claims on December 27 could provide key signals about the direction of crypto ETF flows. Rick Maeda of Presto Research noted that some degree of year-end de-risking is normal, particularly after a volatile fourth quarter. He pointed out that the drawdown in December 2025 was less severe than the $1.5 billion in net outflows recorded during the same period in 2024 according to market data.

The performance of XRP and Solana ETFs is also of interest to analysts and investors. XRP ETFs have maintained inflows despite the broader market weakness, with total inflows reaching $1.25 billion in late December. The continued inflows suggest that institutional investors see value in XRP's long-term utility and regulatory clarity. Solana ETFs have also remained modestly positive, reflecting a trend of small but consistent capital rotation as reported.

Meanwhile, Ether ETFs in 2025 experienced dramatic swings, with periods of rapid asset growth followed by sharp drawdowns. The year ended with net assets stabilizing around $18–19 billion, while weekly trading volumes remained robust. For 2026, the focus will likely shift from novelty to Ethereum's ability to deliver sustained network growth, staking economics, and real-world adoption as market experts forecast.