Spot Bitcoin and Ethereum ETFs experienced another round of significant outflows on December 24 as traders moved to the sidelines ahead of the Christmas holiday. The combined exodus of $232 million reflects reduced liquidity and a weaker appetite for risk during the holiday week.

The Outflow Numbers

On Christmas Eve:

  • Bitcoin spot ETFs: $175 million in net outflows
  • Ethereum spot ETFs: $57 million in net outflows
  • Total combined: $232 million exiting crypto ETFs in a single day

Who's Selling

The outflows were concentrated in the largest funds:

  • BlackRock's IBIT: Led with $91.37 million in redemptions—the largest single-fund outflow
  • Grayscale's GBTC: Saw $24.62 million exit
  • Grayscale's ETHE: Experienced $39.43 million in Ethereum outflows
  • Fidelity's FETH: Lost $14.95 million

Bitcoin Price Action

Bitcoin traded around $87,400 on Christmas Day, showing muted price action:

  • Up 0.19% in 24 hours to reclaim $87,000
  • Ethereum slipped 0.39% but remained near $3,000
  • Both assets trading below recent highs

The Binance Flash Crash

Adding to the day's crypto news, Bitcoin briefly crashed to $24,111 on Binance's BTC/USD1 trading pair before quickly rebounding above $87,000. The extreme price swing was isolated to this specific stablecoin pair backed by World Liberty Financial and did not affect major BTC pairs.

Such flash crashes typically result from thin liquidity and can be exacerbated by automated trading systems during quiet trading hours.

Why the Selling?

Several factors explain the holiday selling pressure:

Year-end profit taking: Investors locking in gains before the calendar turns.

Tax-loss harvesting: Those with underwater positions selling to realize losses for tax purposes.

Reduced liquidity: With fewer market participants during holidays, some traders prefer to reduce exposure.

Risk-off sentiment: The Fed's hawkish December message dampened enthusiasm for risk assets.

$30 Billion Options Expiry Ahead

Looking ahead, approximately $30.3 billion in Bitcoin options are set to expire on Friday at 8:00 AM UTC. The massive expiry could create volatility:

  • Most call options are struck far above the current spot price
  • Large clusters near $100,000 and even $200,000 face near-certain expiry losses
  • Put options below current prices could also move markets

Year-to-Date Performance

Despite recent weakness, 2025 has been a significant year for Bitcoin ETFs:

  • BlackRock's IBIT: Attracted over $25 billion in inflows, ranking sixth among all U.S. ETFs
  • Total spot Bitcoin ETF assets: Exceed $100 billion
  • Institutional adoption: Continues to expand with Vanguard recently allowing 50 million customers access to crypto ETFs

2026 Outlook

Analysts remain generally bullish on Bitcoin's longer-term prospects:

  • Citi: Recently projected Bitcoin could reach $143,000 within 12 months
  • VanEck: Expects a meaningful rebound once year-end dynamics fade
  • Historical pattern: January has traditionally been a positive month for crypto

The Bottom Line

The $232 million in Bitcoin and Ethereum ETF outflows reflects typical year-end dynamics rather than a fundamental shift in investor appetite. Holiday liquidity, profit-taking, and tax considerations are driving flows—not a change in the longer-term thesis. With a massive $30 billion options expiry on Friday and thin trading through New Year's, expect continued volatility. For patient investors, the current weakness may present an opportunity once normal trading conditions resume in January.