Spot Bitcoin ETFs experienced significant outflows during Christmas week, with a total of $782 million withdrawn from these investment vehicles. The largest single-day outflow occurred on Friday, with net outflows reaching $276 million. This marks the longest withdrawal streak for spot Bitcoin ETFs since early autumn, with cumulative outflows exceeding $1.1 billion over the six-day period.
BlackRock's IBIT fund led the outflows with nearly $193 million exiting the fund, followed by Fidelity's FBTC at $74 million. Grayscale's GBTC also saw continued redemptions. Despite these outflows, Bitcoin prices remained relatively stable near $87,000. Total net assets across all U.S.-listed spot Bitcoin ETFs fell to approximately $113.5 billion by Friday, a decrease from earlier in December when they were above $120 billion.
According to Vincent Liu, chief investment officer at Kronos Research, these holiday outflows are likely temporary. Liu attributes the outflows to "holiday positioning" and thinner liquidity, rather than a fundamental decline in demand. He anticipates that institutional flows will return and normalize in early January as desks return from the holidays.
Looking ahead, Liu suggests that a potential shift towards Federal Reserve easing in 2026 could further bolster ETF demand, with rate markets already anticipating 75 to 100 basis points of cuts. He also noted the continued scaling of bank-led crypto infrastructure, which reduces friction for large allocators.
Glassnode reported that Bitcoin and Ether ETFs have entered a sustained outflow phase, signaling a cooling of institutional demand. Despite the recent outflows, some analysts remain optimistic about Bitcoin's long-term prospects. One executive predicts strong, but "not spectacular" returns for Bitcoin over the next decade.
