The reported outflows—approximately $211 million from BlackRock’s iShares Bitcoin Trust (IBIT) and $221 million from iShares Ethereum Trust (ETHA)—represent client redemptions, not BlackRock actively selling its own positions.
These triggered the ETF to sell underlying BTC (2,400 BTC) and ETH (75,000 ETH) to meet cash demands. Overall, spot Bitcoin ETFs saw ~$277–358 million in net outflows, while Ethereum ETFs recorded ~$224 million, marking one of the largest single-day ETH redemptions.
Outflows directly add spot supply to the market, contributing to downward price momentum. BTC is trading around $86,000–87,000 down ~27–31% from its October all-time high, and ETH near $2,930–3,000. This aligns with broader December weakness, where crypto has underperformed stocks amid equity volatility and macro uncertainty.
Concentrated selling from dominant players like BlackRock which holds the majority of ETF assets can exaggerate moves in lower-liquidity periods like year-end. Recent sessions saw combined BTC/ETH ETF outflows exceeding $500 million, correlating with BTC dipping below $90,000 temporarily.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Headlines of “institutional dumping” can fuel retail fear, leading to further liquidations in derivatives markets. Analysts from Kronos Research, Grayscale describe similar outflows earlier in 2025 as “de-risking” or “portfolio rebalancing,” not a loss of long-term conviction.
Institutions often trim exposure amid uncertainty, like Fed policy, geopolitical risks or lock in profits after earlier gains. December typically sees reduced liquidity, tax-loss harvesting, and position squaring ahead of 2026. This pattern mirrors traditional markets and has occurred in prior cycles without derailing bull trends.
Despite recent streaks, spot BTC ETFs remain up billions in cumulative inflows since 2024 launch. BlackRock’s products dominate, and outflows represent a small fraction of total AUM ~$70–120 billion across BTC ETFs.
Some flows have shifted to altcoin ETFs like Solana, XRP seeing minor inflows, suggesting diversification rather than full exit from crypto. Prolonged outflows like extending multi-week streaks seen in November could push BTC toward $80,000 support or lower, delaying a rally to $100,000+ expected by some for early 2026.
If macro conditions improve like clearer rate cuts, inflows often rebound quickly—ETFs have historically amplified upside. Long-term drivers like institutional adoption and Bitcoin as a treasury asset remain intact.
Temporary pressure in a sideways/choppy market, with no structural shift away from crypto exposure. These outflows highlight cooling demand in late 2025 but fit cyclical patterns rather than a fundamental reversal.
The BlackRock-led ~$211M from IBIT and ~$221M from ETHA contributed to short-term selling pressure, but the crypto market has shown resilience with a partial rebound driven by shifting ETF flows and macro signals.
Bitcoin trading in the $86,000–$88,900 range, with sources reporting levels around $86,500–$88,800 ~$87,300 early session, up to $88,850 intraday. This reflects a modest recovery +0.2–2.6% in spots from recent dips below $86,000, but remains ~27–30% off October highs amid volatility.
Ethereum (ETH): Under heavier pressure, hovering near $2,830–$2,850 down ~3–4% today. ETH has lagged BTC, testing support below $2,900 after failing to sustain gains post-CPI data.
The broader market is down ~1–2%, with total crypto cap around $2.9–3.0 trillion, reflecting risk-off sentiment tied to equities— S&P/Nasdaq declines and year-end caution.
Bitcoin spot ETFs reversed sharply on December 17 with strong net inflows of ~$457–459 million— Fidelity’s FBTC led with $391M, BlackRock’s IBIT added ~$111M. This offset prior outflows including Dec 16’s sector-wide ~$277–358M net redemptions and signals renewed institutional buying amid softer rate expectations.
Ethereum spot ETFs continued weakness, with reports of ongoing outflows ~$23–553M cited in recent sessions, potentially weekly figures. BlackRock’s ETHA remains dominant but vulnerable to redemptions.