US Becomes Biggest BTC Seller as Bitcoin ETFs Bleed $825M

Bitcoin ETF outflows reached a staggering $825 million over five trading days, marking one of the sharpest institutional pullbacks in recent months. The United States has now flipped from Bitcoin’s biggest buyer to its largest seller, with Christmas Eve alone seeing $175 million flow out of spot ETF products. This shift comes as tax season pressures and a record $24 billion options expiry event weigh heavily on crypto markets.

US Trading Sessions Drive Bitcoin ETF Outflows Lower

The past week painted a grim picture for institutional Bitcoin demand. According to data from Farside Investors, only one day in the last five managed to attract positive flows. That single bright spot on December 18 brought in $457 million, but it wasn’t enough to offset the bleeding.

Christmas Eve wrapped up the brutal stretch with another $175 million heading for the exits. Every other session since December 15 closed deep in the red, pushing the five-day total to $825.7 million in net outflows.

The pattern reveals something bigger than just holiday trading. US sessions have consistently shown weakness while Asian markets pick up the slack. The Coinbase Premium Index, which tracks price differences between Coinbase and Binance, spent most of December in negative territory. This indicator confirms what many suspected: American traders are selling while Asian buyers step in.

Tax Loss Harvesting and Options Expiry Take the Blame

Market watchers point to two main culprits behind the Bitcoin ETF outflows. First up is tax loss harvesting. Investors often dump losing positions at year-end to offset gains and reduce their tax bills. This seasonal pattern typically fades once the calendar flips to January.

The second factor is harder to ignore. Friday’s quarterly options expiry set a new record with $24 billion worth of contracts settling. These massive events create volatility as traders adjust positions and close out bets. The combination of tax selling and options expiry formed a perfect storm for Bitcoin ETF outflows.

Also Read: On-Chain vs. Off-Chain Transactions: What’s the Difference?

Will Bitcoin ETF Flows Turn Positive Again?

Not everyone sees doom and gloom ahead. Crypto analyst BitBull examined historical patterns and found that negative flows don’t always signal final market tops. He pointed out that price tends to stabilize first, flows turn neutral, and only then do inflows return.

The 30-day moving average for Bitcoin ETF outflows has stayed negative since early November. Ethereum ETFs show similar weakness. But this extended period of outflows might just be setting the stage for a reversal once seasonal pressures ease.

What This Means for Bitcoin’s Price Action

The shift in buyer geography matters more than most realize. When US institutional money drove Bitcoin’s rally earlier this year, it pushed prices to new highs. Now that American traders have turned sellers, Bitcoin needs Asian demand to fill the gap.

Some analysts believe Bitcoin can’t sustain higher levels without US institutional support returning. Others argue that global demand will pick up the slack. The next few weeks should clarify which view holds water.

One thing’s certain: the Bitcoin ETF outflows of recent days represent real money leaving the market. Whether this creates a buying opportunity or signals more downside depends largely on what happens when markets reopen after the holidays.

Also Read: Liquidity Providers Explained: How to Earn Passive Income from DeFi in 2026

Why are Bitcoin ETFs seeing such massive outflows? 

Tax loss harvesting and the quarterly options expiry are the main drivers. Investors sell losing positions before year-end to reduce tax bills, while the $24 billion options expiry created additional selling pressure.

When will Bitcoin ETF flows turn positive again? 

Most analysts expect flows to improve in early January once tax selling ends. Historical patterns show that price stabilizes first before institutional buying returns.

How do Bitcoin ETF outflows affect Bitcoin’s price? 

Large outflows reduce institutional demand, which can pressure prices lower. However, Asian buyers have stepped in to offset some US selling, creating a more balanced global market.

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