Bitcoin ETFs See Outflow Streak End as BTC Holds Steady Near $87,500

Institutional Outflows

Spot Bitcoin ETFs, which have funneled billions into the asset class throughout the year, recorded $83.27 million in net outflows on December 26 alone. Fidelity’s FBTC fund led the exodus with $74.38 million withdrawn, while Grayscale’s GBTC saw $8.89 million depart.

Other major players, including Bitwise, Ark & 21Shares, and VanEck, reported no net activity that day.

This latest withdrawal caps a streak that began on December 18, with daily figures showing $161.32 million out on the first day, followed by $158.25 million, $142.19 million, $188.64 million on December 23, and $175.29 million on December 24.

BlackRock’s IBIT, typically a heavyweight in inflows, contributed significantly to the December 24 tally with $91.37 million in redemptions.

Range-Bound Action

Bitcoin’s price action mirrors this institutional retreat. Trading at $87,492 on December 26, the cryptocurrency dipped 1% over the prior 24 hours, with a low of $86,674 and a high barely scraping $87,631.

Over the past week, it has shed 0.81%, failing repeatedly to push above the psychological $90,000 level.

This consolidation in the $86,000 to $88,000 range highlights growing caution, as traders eye key support at $85,200. A break below that could accelerate declines toward $80,757.

Year-End Rebalancing

Market participants point to several intertwined factors fueling the outflows. Year-end portfolio rebalancing plays a central role, with institutions locking in gains after Bitcoin’s impressive 2025 run.

The asset surged over 100% from January levels, peaking near $126,000 in October, driven by regulatory approvals and mainstream adoption. Yet, as the calendar flips toward 2026, tax-loss harvesting has emerged as a key driver.

Investors offload positions to offset capital gains elsewhere, a tactic amplified by Bitcoin’s 30% pullback from its all-time high.

Similar patterns unfolded in late 2024, when outflows exceeded $1.5 billion in the pre-Christmas week, only for inflows to rebound sharply in the new year.

Low Liquidity & Whale Movement

Holiday dynamics compound the pressure. U.S. markets closed early on December 24 and fully on December 25, thinning liquidity and exaggerating price swings. Open interest in Bitcoin futures dropped 0.99% to $57.42 billion, reflecting reduced leverage as traders unwind risks.

Funding rates remain low, with some altcoins showing negative figures, indicating shorts are compensating longs.

Whale activity adds another layer of intrigue. On December 25, a dormant wallet inactive for eight years moved 400 BTC, worth $34.92 million, to the OKX exchange. Separately, BlackRock transferred 2,292 BTC, valued at $199.8 million, to Coinbase.

Such large deposits to exchanges often precede selling, though no immediate spot dumps materialized.

The broader crypto ecosystem feels the ripple effects. Ethereum ETFs echoed the weakness, posting $52.70 million in outflows on December 24 after $95.53 million the day before.

Ether traded down 1.18% to $2,931, with total net assets for its ETFs at $17.86 billion—a decline from $20.31 billion mid-month. In contrast, niche products like spot XRP and Solana ETFs bucked the trend, drawing $8.2 million and $4.2 million in inflows, respectively, on December 24. This selective behavior underscores that the selling isn’t a blanket risk-off but targeted at major assets amid year-end adjustments.

As 2025 winds down, the crypto community faces a reminder that institutional involvement brings stability but also exposes digital coins to traditional market cycles. Investors now watch initial jobless claims data on December 27 for clues on sentiment heading into the new year. If outflows stabilize and liquidity returns, Bitcoin could reclaim $90,000 and beyond.

Until then, the asset’s struggle below $88,000 keeps the market on edge, blending short-term caution with long-term optimism.