Why Investors Are Fleeing US Bitcoin ETF This December

Source: CoinTribune Original Title: Why Investors Are Fleeing US Bitcoin ETF This December Original Link: https://www.cointribune.com/en/why-investors-are-fleeing-us-bitcoin-etf-this-december/

A Capital Exodus from Bitcoin ETF

Spot Bitcoin ETFs listed in the United States ended the year with a series of almost uninterrupted net outflows, except on December 17.

According to data from Farside Investors, December 24 alone recorded 175.3 million dollars in withdrawals, bringing the total of the last five market days to 825.7 million dollars. This sequence reflects a period of massive disengagement from institutional investors.

Trader Alek proposes a widely accepted explanation at this time of year: “the majority of sales are due to tax loss harvesting, which means it should end within a week”.

Here are the key facts observed during this period:

• Since December 15, every trading day (except 12/17) saw outflows
• Over 825 million dollars left American Bitcoin ETFs within one week
• 175.3 million dollars of withdrawals were recorded on December 24 alone
• The only day with positive inflows: December 17, with +457.3 million dollars
• The main reason cited: tax loss harvesting, a year-end tax optimization strategy
• The aggravating factor: a major options expiration weighed on market sentiment

For Alek, this dynamic is essentially temporary: “it’s temporary, and institutions will soon return to buying”. Several analysts share this view, estimating that liquidity is not destroyed but merely inactive.

A recovery of positive flows could therefore occur as soon as the markets reopen in January, provided that macroeconomic and regulatory conditions remain stable.

When Asia Buys Back What America Sells: Towards a Geographic Reshuffling of Flows

Beyond fiscal or technical considerations, one structural data point worries analysts: the shifting center of gravity of demand for bitcoin.

The Coinbase Premium, an indicator that measures the gap between the price of BTC on a US reference platform and that on a major Asian exchange, was negative for much of December.

This means that the price of the flagship crypto is often lower in the United States than in Asia, reflecting a persistent weakness in American demand. This is summarized by analyst Ted Pillows: “The United States is now the largest seller of BTC. Asia is today the largest buyer”.

This regional shift in flows could have much deeper implications than a mere short-term variation. It potentially reflects a misalignment of interests and strategies between Western markets, more sensitive to taxation and regulation, and Asian markets, where growth dynamics and risk appetite seem more resilient to macroeconomic uncertainty.

Moreover, it should also be noted that the 30-day moving average of flows on Bitcoin and Ether ETFs has remained negative since early November, signaling a more persistent inertia than daily movements alone suggest.

ETF outflows signal institutional retreat on bitcoin, revealing increased caution at the end of the year. It remains to be seen whether this movement reflects a lasting disengagement or a tactical pause before a possible repositioning in early 2026.