2026-01-07 06:25:48

There was a noticeable outflow of funds from US spot Bitcoin ETPs at the end of the year—approximately $1 billion net outflow in December. At first glance, it seems alarming, but the key is the underlying logic: this is mainly institutional investors engaging in year-end tax-loss harvesting, which involves selling losing positions to offset taxes. In simple terms, this is not a sign of declining market demand.

Evidence of this appeared at the start of 2026. On the first trading day of the year, US spot ETPs immediately reversed, experiencing nearly $500 million in net inflows. On-chain data also did not show significant selling by major whales, and holdings remained stable.

More importantly, the fundamentals continue to strengthen. Institutional asset tokenization is making substantial progress, with key institutions like DTCC receiving SEC approvals, opening new channels for the integration of traditional and crypto assets. Overall, this outflow is a technical adjustment, not a trend reversal.

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OnlyUpOnly

· 01-08 02:13

Tax loss harvesting routine, this happens every year, I've seen through it long ago. As soon as the new year opens, it immediately rebounds, it's just institutions shaking out. The approval of DTCC is the real core, tokenization this time is serious. Big whales' holdings are as steady as a rock, I think there's nothing to fear. A billion outflow sounds intimidating, but on the flip side, isn't it an opportunity to accumulate at low levels?

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LoneValidator

· 01-07 06:54

Tax loss harvesting has been on my mind for a while, but seeing 1 billion flowing out still makes me a bit nervous. A net inflow of 500 million in the new year is indeed a strong rhythm. Whales not running away means they understand everything. Tokenization is the real core; once DTCC approves this, it will be a different story.

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HodlVeteran

· 01-07 06:49

Haha, I’m familiar with the tax loss harvesting trick; I fell for this trap back in the day. On the first day of the new year, there was a reverse net inflow. What does that mean? The institutions didn’t run away at all; they just created a tax copy. As a seasoned trader, I really dislike this kind of false alarm act.

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RugDocScientist

· 01-07 06:31

Tax loss harvesting sounds good, but a $1 billion outflow is indeed scary... Fortunately, it rebounded immediately at the start of the year. But what I really believe in is the approval of that DTCC thing, which is a long-term positive. The big whales not leaving is a good sign, indicating they are still bullish.

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