U.S. Bitcoin ETFs Under Pressure

American Bitcoin-based exchange-traded funds recorded further losses during the holiday period. On Christmas Eve alone, more than $175 million flowed out of the market on a net basis, despite the shortened U.S. trading session. As a result, the last five trading days have seen total outflows reach $825.7 million.

Data published by UK-based investment firm Farside Investors show that selling pressure persisted until the close of the final pre-holiday session. Since December 15, nearly every trading day has ended in negative territory. The only exception was December 17, when funds attracted $457.3 million in new inflows.

Market participants point to the seasonal nature of this weakness. According to analysts, the primary driver is tax-loss harvesting, a process that typically concludes within about a week. Investor sentiment may also have been weighed down by Friday’s options expiration, which tends to reduce risk appetite. Despite this, some market observers expect institutional demand to return once the holiday period comes to an end.

Downward pressure is also reflected in the so-called Coinbase Premium Index. This indicator, which measures the price difference of Bitcoin between Coinbase and Binance, remained negative for most of December. This suggests weaker demand from U.S.-based investors.

According to analyst Ted Pillows, the United States has currently become the largest seller of Bitcoin, while the strongest demand is coming from Asia. Some observers believe that without a return of U.S. buyers, Bitcoin may struggle to sustain higher price levels.