Bitcoin ETF Records Historical Drawdown

The Bitcoin (BTC) exchange-traded funds (ETFs) have seen a massive outflow of $5.55billion since the coin hit an all-time high (ATH) of $126,000. The development suggests a shift in investor sentiment amid continued consolidation of price for the leading cryptocurrency asset.

As highlighted by CryptoQuant analyst, JA Maartunn, the withdrawals marks the largest drawdown in the Bitcoin ETFs two years history. This total withdrawal spike might have been triggered by the asset’s continued exchange below the $90,000 price level over an extended period of time.

Bitcoin ETF Outflows Heightened Around Yuletide 

Farside Investor data shows that between December 18 and December 26, 2025, over $1.1 billion worth of assets have exited the ETFs. The heavy withdrawals were largely driven by macroeconomic pressures such as the rising U.S. interest rate expectations and profit-taking motives.

The Bitcoin ETFs outflows now sits at a record peak which signals reduced risk appetite from investors and possible short-term bearish sentiments towards BTC.

Interestingly, in previous drawdowns, institutional holders intervened by buying the dip. However, so far, the data suggests that these institutional giants are exercising caution in the market.

Is Institutional Confidence Waning?

Notable leaders like BlackRock’s IBIT dumped over $192 million worth of BTC ETF on December 26, a day that registered a cumulative outflow of $275.9 million.

Most of the sales by BlackRock were done on Coinbase exchange. It was however not limited to just Bitcoin as the asset management firm also offloaded Ethereum on the exchange.

It is worth mentioning that despite the massive outflow in the Bitcoin ETF market, assets under management are still above $100 billion. This suggests that there is sustained institutional interest in the product.

Bitcoin Price Stalls as Volume Declines

Some opine that the current outflow is merely a correction that precedes price rebounds.

As of this writing, Bitcoin is changing hands at $87,805.27, which represents a 0.46% increase in the last 24 hours. The coin has not been able to climb as trading volume has declined by 49.96% to $13.6 billion within the same time frame.

In the last 30 days, the asset has traded within a range of $84,000 and $95,000, unable to break the price resistance to make higher climbs towards $100,000. Some institutional investors like Strategy are using the opportunity to focus on long-term growth.