Spot bitcoin and ether exchange-traded funds (ETFs) experienced significant outflows on December 24, highlighting a trend seen during major holiday periods when trading activity typically decreases and investor engagement wanes. According to analysis from SoSoValue, bitcoin spot ETFs encountered substantial net outflows totaling approximately $175 million, while ether spot ETFs saw a reduction of $57 million.
Leading the outflows was BlackRock’s IBIT, which witnessed a considerable exit of $91.37 million from its fund. Grayscale’s GBTC followed closely with an outflow of $24.62 million. The ether ETFs were not immune to the downward trend, with SoSoValue reporting net outflows of around $52.7 million for Ethereum-focused products. Grayscale’s ETHE experienced the largest impact, recording an outflow of $33.78 million, which elevated its cumulative historical net outflows to an alarming $5.083 billion.
Amidst the downturn, there was a small ray of positivity from Grayscale’s Ethereum Mini Trust ETF, which recorded an inflow of $3.33 million, bringing its overall cumulative inflows to $1.506 billion. This minor inflow contrasted sharply with the broader trend affecting both bitcoin and ether ETFs.
The observed behavior aligns with seasonal patterns surrounding holidays, where trading volumes tend to drop and liquidity decreases, leading to more defensive positions among traders. In such an environment, even minor trade orders can heavily influence ETF flows, particularly as market makers increase spreads and investors opt to remain in cash rather than engage in trades during less favorable conditions.
Importantly, while outflows may indicate a bearish sentiment, they do not solely reflect a shift in investor outlook. Many of these movements can be attributed to routine portfolio rebalancing, tax management strategies, or shifts in exposure between different financial products.
Despite these factors, the sustained negative flows present a concerning narrative for the cryptocurrency sector, reinforcing the perception that bitcoin and ether ETFs are viewed as risk assets susceptible to volatility, particularly when liquidity becomes constrained. Investors and analysts alike will be closely monitoring future ETF activities as a barometer for institutional demand and broader market conditions in the cryptocurrency landscape.
