Bitcoin ETFs Bleed $826M: A Yuletide Tale of Despair 🎄📉

by

According to the esteemed Farside Investors (a firm whose data is as reliable as a snowman in July), the grand exodus of institutional funds from US spot Bitcoin ETFs continued with all the festive cheer of a deflated balloon. On that fateful day of tinsel and turmoil-Christmas Eve, no less-a mere $175 million vanished into the void. This was but a single stanza in a five-day symphony of despair, where the total net outflows swelled to a rather impressive $826 million. Since December 15, only one trading day escaped the clutches of selling-December 17, which, in a rare act of defiance, attracted a paltry $457 million in inflows. One might call it a Christmas miracle… if $457 million wasn’t just a rounding error in the grand scheme of things.

Institutional Outflows

Market participants, those paragons of optimism, blamed the carnage on “routine year-end moves.” Ah yes, the age-old tradition of tax-loss harvesting-a practice as thrilling as watching paint dry. Alek, a trader on X (formerly Twitter, now a museum exhibit), opined that the selling was “tax-related” and would likely fade within a week. One wonders if Alek’s crystal ball includes a subscription to the IRS newsletter. Meanwhile, a record options expiry loomed like a grumpy Santa, sapping appetite for risk with the subtlety of a snowplow.

Pressure In US Trading Hours

Data revealed the US market’s buying enthusiasm was about as robust as a jellyfish’s handshake. The Coinbase Premium-a metric so obscure it could be a conspiracy theory-hovered below zero for much of December, signaling a yawn-worthy lack of demand. Crypto analyst Ted Pillows, a man whose insights are as reliable as a weather vane in a hurricane, noted that the US had morphed into the world’s most enthusiastic seller while Asia, ever the party pooper, became the buyer. This toxic split threatens to cap Bitcoin’s rallies unless the US rediscover its appetite for risk. One can only hope they remember how to use a keyboard by January.

Liquidity Inactive

Some traders, perhaps those who still believe in magic, argue the cycle isn’t dead-just napping. According to social media wisdom (a.k.a. opinions from people who’ve never held a share), the path back involves price drops first, then flows. It’s a sequence as logical as “buy low, sell lower.” For now, liquidity lies dormant, like a bear in winter, waiting for seasonal selling to take a powder. One suspects the bear is reading a book titled How to Ruin a Rally in 10 Days.

Since early November, the 30-day moving average of US spot ETF net flows has been negative for Bitcoin and Ethereum. This means that, on average, more capital has been fleeing these ETFs than entering them for weeks. A triumph of futility, if you will.

This is important because ETFs are…

– BitBull (@AkaBull_) December 24, 2025

On-Chain Signals

On-chain metrics, those digital breadcrumbs, offer a glimmer of hope. Long-term holders aren’t exactly sprinting to sell, though they’re taking profits with the enthusiasm of a sloth on vacation. Realized gains suggest a modest exit, not a panic stampede. If this is the peak, it’s the kind of peak where you pack your bags and leave the lights on.

Outlook For The Coming Months

Investors will now watch ETF flows like hawks (or, more accurately, like people waiting for a bus that never comes). If flows turn neutral, perhaps prices will stabilize and rise-without needing a miracle. The current weakness, they say, is temporary, a holiday fling with tax-loss harvesting. Still, expect choppy waters until the US buyers return, presumably after their annual ritual of buying overpriced eggnog and forgetting about crypto.

Read More

2025-12-26 03:45