Bitcoin ETFs See $825M in Five-Day Outflows as US Investors Lead Holiday Selling

Bitcoin-linked exchange-traded funds (ETFs) continued to face heavy pressure through the Christmas period, with investors pulling hundreds of millions of dollars from US-listed products during a traditionally quiet trading week.

Data shows that Bitcoin ETF outflows have now reached roughly $825 million over the past five trading days, reinforcing the view that US-based institutions have become the market’s largest net sellers of BTC in recent weeks.

Holiday Trading Brings More Red for Bitcoin ETFs

On Christmas Eve, a shortened US trading session still produced significant selling. According to figures from UK investment firm Farside Investors, US spot Bitcoin ETFs recorded net outflows of about $175 million on the day.

That result mirrored the pattern seen throughout the past week. Each of the last five trading days ended with net outflows totaling $825.7 million. Since Dec. 15, only one session broke the trend. On Dec. 17, Bitcoin ETFs attracted net inflows of $457.3 million, briefly interrupting the broader sell-off.

Despite the holiday season, institutional investors showed little sign of stepping away while Wall Street remained open.

Why Institutions Are Selling

Market participants point to seasonal factors rather than a shift in long-term sentiment. Traders have widely cited tax-loss harvesting as a key driver, as investors sell underperforming assets before year-end to offset capital gains.

“Most of the selling is due to tax loss harvesting, which means it’ll be over in a week,” trader Alek said in a post on X.

He also noted that a large options expiry event late in the week may have dampened risk appetite.

According to Alek, the pressure is temporary. “Institutions will be back to bidding soon,” he added.

US Selling, Asia Buying

Recent market data highlights a regional split in Bitcoin demand. The Coinbase Premium, which tracks the price difference between Bitcoin traded on Coinbase versus Binance, has remained negative for much of December. This suggests weaker buying interest from US investors compared with overseas markets.

“US is now the biggest seller of BTC. Asia is now the biggest buyer of Bitcoin,” crypto analyst and entrepreneur Ted Pillows summarized.

Historically, sustained US demand has been an important factor in helping Bitcoin hold higher price levels, making the current imbalance a closely watched trend.

Longer-Term Outlook Remains Cautious but Stable

While ETF flows have been consistently negative since early November on a 30-day moving average basis, some traders argue this does not signal a major market peak.

Trader BitBull noted that declining ETF flows often reflect inactive liquidity rather than capital permanently leaving the market.

“Price stabilizes first, flows turn neutral, and only then do inflows return,” he said, referring to both Bitcoin and Ether ETFs.

In his view, a meaningful trend shift is more likely to begin when ETF flows turn positive again, followed by a stronger price move.