U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a massive outflow of around $825 million this week, largely driven by institutional investors using tax-loss harvesting strategies ahead of year-end.
The selling pressure continued for eight straight trading sessions, reflecting portfolio rebalancing as investors lock in losses to offset capital gains for tax purposes. Analysts suggest this activity is seasonal and temporary, rather than a sign of long-term bearish sentiment toward Bitcoin.
Daily data showed notable withdrawals from major Bitcoin ETF products, while market participants highlighted that selling was strongest during U.S. trading hours. At the same time, buyers from Asian markets stepped in, helping absorb some of the selling pressure and showing continued global demand for Bitcoin.
Ethereum-focused ETFs also saw moderate outflows, while some newer digital asset ETFs managed to attract limited inflows, indicating selective investor interest across the crypto market.
Experts believe the current ETF outflows could slow or reverse once the tax-loss harvesting window closes and major derivatives expiries pass, potentially setting the stage for renewed inflows in the early part of the new year.
