Spot Bitcoin ETFs suffered heavy withdrawals over the Christmas week as investors pulled about $782 million from the products, according to data from SoSoValue.
Bitcoin’s market price stayed roughly near $87,000, even as the funds lost cash. The drop trimmed total net assets in US-listed spot Bitcoin ETFs to about $113.5 billion, down from levels above $120 billion earlier in December.
Major Funds Lead The Withdrawals
Friday was the worst single day of the stretch, when ETFs recorded a combined $276 million in net outflows. BlackRock’s IBIT accounted for nearly $193 million of that exit, while Fidelity’s FBTC lost about $74 million.
Grayscale’s GBTC saw more modest redemptions during the same period. Friday also marked the sixth straight day of outflows — the longest streak since early autumn — with more than $1.1 billion draining out across that run.
December sees heavy outflows from spot Bitcoin ETFs. Source: SoSoValue
Seasonal Pressure Or A Bigger Shift
According to Vincent Liu, chief investment officer at Kronos Research, holiday moves and thin market depth can cause short-term withdrawals as desks close for the holidays.
He expects institutional flows to come back when trading desks reopen in early January and thinks a shift toward Fed easing in 2026 — markets are pricing roughly 75–100 bps of cuts — could lift demand for ETFs.
Based on reports from Glassnode, however, the trend looks broader than holiday noise: the 30-day moving average of net flows into US spot Bitcoin and Ether ETFs has been negative since early November, signaling sustained outflows by institutional players.
BTCUSD trading at $87,823 on the 24-hour chart: TradingView
Metals Take Center Stage
Meanwhile, gold and silver enjoyed a banner run while crypto saw pullbacks. Gold futures climbed above $4,550, hitting multiple records this year. Silver topped $75 per ounce and has gained about 150% year-to-date.
That rally has prompted some investors to reallocate away from crypto. Market experts like Louis Navellier said that with central banks active in the metal markets and volatility lower, gold has attracted flows that might otherwise have gone into digital assets.
Outspoken critic Peter Schiff wrote on social media that Bitcoin’s inability to rise alongside other risk assets raises doubts about its near-term upside.
What This Means For Institutional Demand
ETFs are widely watched as a proxy for institutional appetite. Based on the latest figures, institutions appear to be pulling back after a period when they were a key driver of crypto markets.
The divergence between rising precious metals and a modest decline in Bitcoin — about 6% year-to-date — has reinforced that view. Some of the selling likely reflects rebalancing and cash needs during the holidays. Some of it may reflect a rethinking of risk allocation by large allocators.
Reports suggest flows could normalize when trading activity returns to normal after the holiday break. If rate markets continue to price in easing and bank-led crypto infrastructure becomes easier for big investors to use, ETF inflows might resume. For now, the flow data points to a cautious institutional stance, even as Bitcoin’s price holds at elevated levels.
Featured image from Shutterstock, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Credit: Source link
