Bitcoin (BTC) institutional outflows continued into Christmas as the US gained the title of biggest BTC seller.
Key points:
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Bitcoin ETF netflows stay negative for Christmas Eve as the institutional investment vehicles lose another $175 million.
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Tax obligations and the quarterly options expiry are blamed for the poor performance.
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Hope remains for a broad rebound after the holiday season.
Analysis: Bitcoin institutional bid to return “soon”
Data from UK-based investment company Farside Investors confirms that on Christmas Eve, net outflows from the US spot Bitcoin exchange-traded funds (ETFs) totalled over $175 million.
Bitcoin institutional capital saw no reason to wrap up for the holidays while Wall Street was still open this week.
Farside shows that a lengthy spate of selling continued right up until the last pre-Christmas US trading session ended, with net outflows at $175.3 million.
The tally is similar to that of the past five trading days, which each ended “in the red” for total net outflows of $825.7 million. Since Dec. 15, every trading day has been red except for last Wednesday, which managed to attract net inflows of $457.3 million.
Commenting, market participants attributed the ETFs’ weak performance to seasonality.
“Most of the selling is due to tax loss harvesting, which means it’ll be over in a week,” trader Alek wrote in a post on X.
Alek further noted that Friday’s record options expiry event could be impacting risk appetite.
“This is temporary and institutions will back to bidding soon,” he added.
An accompanying chart underscored a recent phenomenon: persistent BTC price downside during US trading sessions.
The Coinbase Premium, which measures the difference in price between Coinbase’s BTC/USD and Binance’s BTC/USDT pairs, has spent much of December in negative territory.
“US is now the biggest seller of $BTC. Asia is now the biggest buyer of Bitcoin,” crypto analyst and entrepreneur Ted Pillows summarized.
A negative Premium reflects a lack of buyer demand from the US — something that some believe Bitcoin needs to rediscover to have a chance at holding higher levels.
Bitcoin, Ether ETFs stuck since early November
Offering some hope for 2026, trader BitBull argued that negative ETF netflows, even on a 30-day moving average basis, do not imply “final market tops.”
Related: Bitcoin institutional buys flip new supply for the first time in 6 weeks
“Price stabilizes first, flows turn neutral, and only then do inflows return. For now, the data suggests liquidity is inactive, not destroyed,” he told X followers about both Bitcoin and Ether (ETH) ETF habits.
“A trend change will likely start with ETF flows turning positive again before price makes a strong move.”
30-day moving average netflows have been consistently negative since the start of November.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
