In just five trading days, Bitcoin exchange-traded funds (ETFs) have experienced a staggering loss of over $825 million. This decline continued on Christmas Eve, with an additional $175 million in net outflows reported, marking a negative trend for these investment vehicles.
According to data from Farside Investors, the US has emerged as the largest seller of Bitcoin, while Asian markets are stepping up as the primary buyers. The ongoing selling activity is largely attributed to tax loss harvesting and the expiration of quarterly options, which have dampened market performance.
Despite the current downturn, some traders express optimism for a rebound in institutional interest following the holiday season. The negative sentiment has persisted since December 15, with the only exception being December 17, which saw a rare influx of $457.3 million in net inflows.
Market analysts anticipate that the selling pressure will ease soon, as traders expect institutions to re-enter the market once the seasonal factors subside.