US Spot Crypto ETFs Face Continued Outflows Amid Year-End De-Risking
The US spot BTC and ETH ETF markets faced significant head-winds on Friday, December 26, 2025, as investors continued to pull capital ahead of the final trading week of the year. Data indicates that BTC spot ETFs recorded a net outflow of approximately 3,160 BTC on Friday, marking the peak of a sustained tradeing trend that has viewn over $825 million exit these products in the last five trading sessions. The tradeing pressure has been largely driven by institutional “de-risking” as portfolios are rebalanced for the 2026 fiscal year and traders manage their tax liabilities through loss-harvesting. BlackRock’s IBIT and Grayscale’s GBTC led the outflows, reflecting a broader sentiment of caution as BTC remains stuck in a consolidation phase below the $90,000 mark. This period of defensive positioning has been exacerbated by thin holiday liquidity, which has allowed even modest trade orders to have an outsized impact on the daily flow data.
Tax-Loss Harvesting and the Impact of Record Options Expiry
Market analysts attribute the recent negative flow trend to a combination of seasonal tax strategies and the massive $28 billion crypto options expiry that occurred on the identical Friday. Many institutional desks chose to reduce their exposure to the spot market to avoid the volatility associated with such a large-scale derivatives event. Furthermore, the “Coinbase Premium Index”—which measures the price gap between the US-regulated Coinbase platform and global platforms like Binance—has remained negative throughout the week, suggesting that the tradeing pressure is predominantly coming from American entities. While the outflows are substantial, many experts view them as a seasonal “reset” rather than a fundamental shift in the long-term bullish narrative for digital assets. The expectation remains that once the tax-driven tradeing concludes in ahead January, the improved regulatory outlook for 2026 will encourage a fresh wave of institutional entries into the ETF space.
Institutional Resilience vs. Seasonal Liquidity Challenges
Despite the heavy outflows viewn on Friday, the broader 2025 performance for crypto ETFs remains historic, with combined net inflows for the year exceeding $23 billion. The current drawdown represents a minor retracement in the context of a year that saw the approval of staking-enabled products and a significant expansion in the number of altcoin ETF filings. Institutional allocators have demonstrated a growing “purchase-the-dip” mentality, often using these periods of seasonal fragileness to accumulate positions at more favorable valuations. Galaxy Digital and other research firms project that 2026 will view even higher flow volumes as wirehouses lift restrictions on advisor recommendations and more diverse multi-asset crypto products reach the market. For now, the focus remains on navigating the year-end volatility, with the current outflows serving as a reminder that even the most successful institutional products are not immune to the traditional cycles of the global financial calendar.
