Institutional investments in spot Bitcoin ETFs have come under pressure in recent trading sessions: more than $175 million exited US ETFs during the Christmas session, with total outflows over five days reaching $825.7 million. Data from Farside Investors shows that since December 15, only one day recorded inflows totaling $457.3 million, while all other sessions were negative. These figures highlight the current concentration of selling during the US trading session and regional flow differences.
Bitcoin ETFs experience significant outflows
Farside Investors reports a prolonged series of net outflows, including over $175 million in the last pre-Christmas session and a total of $825.7 million over five trading days. This sequence of negative sessions underscores that institutional flows remain bearish during this period. For comparison, the sole positive day since December 15 brought inflows of $457.3 million, indicating brief spikes in demand amid the broader sell-off.
Reasons behind the selling pressure
Market participants cite several reasons for the recent selling: the primary one is tax loss harvesting, explicitly noted by trader Alek, who pointed out that most sales are linked to tax considerations. Additionally, Alek mentioned a record number of option expirations during the week, which may have reduced risk appetite among some players. Together, these factors explain the short-term weakness in ETF demand.
Market dynamics and regional trends
Regionally, flows have shifted: according to analyst Ted Pillows, the US is the largest Bitcoin seller, while Asia is the biggest buyer. A sign of weak US demand is the negative Coinbase Premium, which remained below zero for most of December and reflects the price difference between Coinbase and Binance. This pattern indicates a temporary lack of buying interest from US addresses.
Future outlook and expert opinions
Several market participants have sought to downplay the severity of the situation: trader BitBull noted that negative net flows, including the 30-day moving average, do not necessarily signal "final market peaks." He observed that prices typically stabilize first, then flows become neutral, and only afterward do inflows return; he described liquidity as not destroyed but "inactive." These assessments suggest the current behavior is temporary rather than an irreversible trend change.
Why this matters
For miners, the ETF outflows matter because institutional flows influence overall liquidity and market psychology. If large buyers in Asia offset US sales, this can soften local price declines, but in the short term, negative flows increase volatility. Moreover, tax-driven selling and option expirations are external factors that may temporarily pressure prices without altering the fundamental mining economics.
What to do?
- Assess your price sensitivity: avoid rushing to sell equipment during short-term price swings if your operating costs are covered by current cash flows.
- Plan your tax strategy: consider possible seasonal tax loss selling by institutional investors when planning coin sales.
- Monitor liquidity: a negative Coinbase Premium indicates weak US demand, so factor in spreads and fees when converting to fiat or stablecoins during large sales.
- Prepare for volatility: maintain reserve liquidity and verify remote monitoring and emergency shutdown settings to reduce operational risks.
For a deeper comparison of recent outflows and their scale, see more on outflows; for contrast with the single inflow day, check the article about the $457M inflow that occurred mid-period.