US spot Bitcoin ETFs continued to face selling pressure into the Christmas period, extending a multi day run of net outflows as institutional investors reduced exposure before year end.
Data from UK based investment firm Farside Investors shows that US listed Bitcoin ETFs posted $175.3 million in net outflows on Christmas Eve, marking the fifth consecutive trading session of losses. Wall Street remained open during the session, and institutional activity showed no signs of slowing ahead of the holiday.
Over the past five trading days, total net outflows across US spot Bitcoin ETFs reached approximately $825.7 million, underlining a persistent risk off tone among large investors. Since December 15, every trading session has ended negative for ETF flows, with the sole exception of December 17, when inflows of $457.3 million briefly interrupted the trend.
Bitcoin ETFs pressured by tax selling and options expiry
Market participants attribute the recent weakness in Bitcoin ETFs largely to seasonal factors rather than structural demand erosion.
Several traders pointed to tax loss harvesting as a key driver behind the selling. As the calendar year draws to a close, investors often realize losses to offset capital gains elsewhere, leading to temporary pressure on asset prices and fund flows.
In addition, the final week of December includes a major quarterly options expiry, which can reduce risk appetite across derivatives and spot markets. According to traders, this expiry cycle may be prompting institutions to unwind positions or hedge exposure rather than deploy new capital.
One market participant noted that most of the current selling activity is expected to subside within days once tax related positioning concludes. Another added that institutional buyers are likely to return after the holiday period, once liquidity conditions normalize.
Supporting the cautious outlook, price action during US trading hours has remained weak. The Coinbase Premium, which tracks the price difference between Bitcoin trading on Coinbase and Binance, has stayed negative for much of December. This indicates relatively softer buying demand from US investors compared with offshore markets.
Crypto analyst Ted Pillows summarized the shift by noting that the United States has recently become the largest net seller of Bitcoin, while Asian markets have emerged as the dominant source of buying activity. A negative premium suggests that renewed US demand may be needed for Bitcoin to sustain higher price levels.
Bitcoin and Ether ETFs show similar stagnation
Despite the near term pressure, some traders argue that negative ETF flows do not necessarily signal a market peak.
Trader BitBull observed that even when ETF netflows remain negative on a 30 day moving average basis, it does not mark a final top. Instead, historical patterns suggest that prices tend to stabilize first, followed by neutral flows, before sustained inflows return.
According to this view, liquidity in both Bitcoin ETFs and Ether ETFs appears inactive rather than permanently exiting the market. A broader trend shift would likely begin once ETF flows turn positive again, potentially preceding a stronger price recovery.
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