Institutional money flowed out of U.S. spot Bitcoin ETFs through the last full trading day before Christmas, according to data from Pharcyde Investors.
Net outflows on Christmas Eve amounted to just over $175 million. This was part of a series of weak sessions, with total net outflows over the past five trading days increasing to nearly $826 million. Since December 15th, all trading days have ended with net selling, except for December 17th, when $457 million in inflows occurred.
outflow from institutions
Market participants pointed to the usual end-of-year movements as the main factor. The report found there was a lot of “tax loss harvesting” this month, where traders sold positions to realize tax losses.
One X trader named Alek said that most of the selling was related to tax reasons and could disappear within a week. Traders also warned that a record option expiry on Friday could dampen risk appetite ahead of a big settlement.
US spot Bitcoin ETF total outflows. Source: Farside Investors
Pressure on US trading hours
The data showed that the downside was strongest during trading in the United States. The Coinbase premium (an indicator that compares Coinbase's BTC/USD price to Binance's BTC/USDT) spent much of December below zero, suggesting buying weakness in the US market.
Cryptocurrency analyst Ted Pillows summed up this trend pattern by saying that the US has become the biggest seller and Asia has played the role of the main buyer. This split could limit Bitcoin's ability to maintain high prices during the rally if US demand does not return.
liquidity is inactive
Other traders argue that negative ETF flow numbers do not mean the cycle is over. Based on reports shared on social channels, you'll typically see the price first, then the flow.
Price finds a base and then the flow flattens out before new inflows appear. In this view, current liquidity appears inactive rather than broken. Therefore, there is room for a rebound once the seasonal sell-off subsides.
Since early November, the 30-day moving average of U.S. spot ETF net flows has remained negative for both Bitcoin and Ethereum.
This means, on average, more money is flowing out of these ETFs than coming in for several weeks in a row.
This is important because ETFs are… pic.twitter.com/qR1bMQNqxe
— Bitbull (@AkaBull_) December 24, 2025
on-chain signal
On-chain metrics provide some comfort. Long-term holders are in no rush to sell immediately. There is some profit taking in realized profits, but the price movements are not extreme enough to indicate a terminal peak. This pattern fits into the idea that sales are being absorbed into other hands. If the selloff is nearing exhaustion, large buyers could step in when the ETF turns neutral or positive.
Outlook for the coming months
Investors will be watching ETF trends closely after the holidays. If flows shift in a neutral direction, prices can stabilize and then rise without the need for large new demand. The combination of tax selling and options-related positioning suggests that some of the current weakness may be temporary. Still, traders should expect volatility while US buyers remain silent.
Featured images from Pexels, charts from TradingView
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