Bitcoin and Ethereum ETFs have year-end exits as investors reduce risk during the holiday season

Source: PortaldoBitcoin Original Title: Bitcoin and Ethereum ETFs see outflows on Christmas as investors reduce risk at year-end Original Link: Spot Bitcoin and Ethereum ETFs traded in the United States recorded net outflows on Christmas Eve, reflecting a classic risk reduction movement and low liquidity typical of the end of the year in financial markets.

Data shows that Bitcoin ETFs had net withdrawals of US$ 188.6 million on Tuesday, extending a four-day consecutive negative flow. The biggest impact came from IBIT, from BlackRock, which alone accounted for US$ 157.3 million in outflows, while products from Fidelity, Grayscale, and Bitwise also registered significant redemptions.

In the past week, spot Bitcoin ETFs totaled net outflows of US$ 497.1 million, reversing the US$ 286.6 million inflows observed in the week ending December 12. The movement reinforces the view that investors are adjusting positions as the year approaches its end, especially after a fourth quarter marked by high volatility.

Ethereum ETFs followed the same trend. On Tuesday, net outflows reached US$ 95.5 million, a direct contrast to the US$ 84.6 million inflows recorded the previous day. The Grayscale ETHE fund led the redemptions, with US$ 50.9 million leaving the product, the largest daily negative flow among Ethereum ETFs.

Technical adjustment

According to Vincent Liu, CIO of Kronos Research, the data does not indicate a structural loss of confidence in cryptocurrencies, but rather typical technical adjustments for the period. He states that the combination of reduced liquidity, portfolio rebalancing, and profit-taking tends to amplify specific movements at this time of year.

Nick Ruck, director of LVRG Research, shares this assessment and highlights that seasonal gains realization, tax loss harvesting, and lower trading volume during the holidays contribute to investors reducing exposure before Christmas.

A more cautious view on these flows comes from Rick Maeda, associate researcher at Presto Research, who states that he does not give excessive weight to outflows recorded on the eve of the holiday. He recalls that flows of Bitcoin and Ether ETFs have been volatile in recent months and that year-end balance adjustments are common, especially after an unstable quarter.

Maeda also draws a historical parallel, noting that in the four trading sessions leading up to Christmas 2024, spot Bitcoin ETFs accumulated more than US$ 1.5 billion in net outflows, during a period when the asset was retreating after reaching all-time highs. In comparison, the current movement seems much more moderate.

While cryptocurrencies faced a cautious environment, US stocks had a broadly positive day, with major indices closing higher and the S&P 500 reaching a new all-time high. The macroeconomic backdrop also showed signs of strength after the US Department of Commerce reported that the economy grew at an annualized rate of 4.3% in the third quarter, above the pace observed in the previous quarter.

With US markets operating on reduced hours on Christmas Eve and closed on the 25th, analysts say that investors’ attention should turn to economic indicators released after the holiday, when liquidity is expected to return more consistently.

For Vincent Liu, only from that moment will it be possible to more clearly assess the market direction at the beginning of 2026, as more robust flows and data such as initial unemployment insurance claims begin to influence investor sentiment.