Institutional money flowed out of U.S. spot Bitcoin ETFs throughout the final trading day before Christmas, according to data from Farside Investors.
Net outflows on Christmas Eve were just over $175 million. This was part of a series of weak sessions. Total net outflows over the previous five trading days were close to $826 million. Since December 15th, every trading day except December 17th has ended with net sales, bringing inflows of $457 million.
institutional leaks
Market participants cited routine year-end movements as a key factor. Tax loss harvesting was heavy this month, with traders selling positions to realize losses for tax purposes, according to the report.
A trader in Traders also flagged a record options expiration on Friday as a force that could dampen appetite for risk ahead of a large settlement.
US spot Bitcoin ETF total outflows. Source: Farside Investors
US trading hours pressure
The data showed the largest declines occurred during the US trading session. The Coinbase Premium, a measure comparing the price of BTC/USD on Coinbase to BTC/USDT on Binance, spent most of December below zero, a sign of weak purchasing power in the US market.
Crypto analyst Ted Pillows summarized the flow pattern, saying the US became the biggest seller and Asia served as the main buyer. This split could limit how high Bitcoin can remain during a rally if U.S. demand does not recover.
liquidity inactive
Other traders argue that negative ETF flow numbers do not mean the cycle is over. According to reports shared on social channels, price usually comes first and then the path back.
The price finds a base and then the flow flattens out before new inflows appear. From this perspective, current liquidity appears inert rather than impaired. That leaves room for a rebound once seasonal sales subside.
Since early November, the 30-day moving averages of U.S. spot ETF net flows have remained negative for both Bitcoin and Ethereum.
This means that, on average, more capital exits the ETF than enters it over several consecutive weeks.
Because ETFs are important… pic.twitter.com/qR1bMQNqxe
— BitBull (@AkaBull_) December 24, 2025
On-chain signal
On-chain indicators provide some comfort. Long-term holders are not in a rush to sell all at once. Realized Profits shows some profit taking, but not to the extreme levels that would mark a final peak. This pattern is consistent with the idea that sales are being absorbed into other hands. As selling nears exhaustion and the ETF turns neutral or positive, large buyers may step in.
Outlook for the coming months
Investors will be watching ETF flows closely after the holidays. When the flow moves in a neutral direction, prices stabilize and can rise without large new demand. The mix of tax selling and options-related positioning suggests that some of the current weakness may be temporary. Still, traders should expect choppy moves with U.S. buyers still underwhelmed.
Featured image from Pexels, chart from TradingView
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