Bitcoin ETFs See Outflows as Altcoin Funds Attract Inflows – Year-End Rotation Hits BTC Hardest

U.S. spot Bitcoin ETFs recorded $142 million in net outflows on December 22, 2025, marking the third consecutive day of losses and signaling year-end profit-taking or tax-loss harvesting in the flagship cryptocurrency.

BlackRock’s IBIT was the lone positive performer with a modest $6 million inflow, while other major funds bled capital. In contrast, altcoin-focused ETFs saw renewed demand: Ethereum products ended a seven-day outflow streak with $84.59 million in inflows, Solana ETFs notched their first meaningful $7.47 million since launch, and XRP funds added $43.89 million—pushing total assets past $1.25 billion. This clear rotation highlights seasonal tax strategies weighing heaviest on Bitcoin, while altcoins like Solana benefit from strong network fundamentals and institutional interest, even as SOL price hovers near $125.

Breakdown of December 22 ETF Flows

The day’s data showed a stark divide between Bitcoin and altcoin products:

• Spot Bitcoin ETFs: Net -$142 million (third straight outflow day).

  • BlackRock IBIT: +$6 million (only gainer).
  • Others: Significant redemptions amid year-end positioning.

• Ethereum ETFs: +$84.59 million, snapping seven-day losing streak.

• Solana ETFs: +$7.47 million (first notable inflow post-launch).

• XRP ETFs: +$43.89 million (total AUM >$1.25 billion).

This shift pushed altcoin ETF momentum while Bitcoin bore the brunt of seasonal pressures.

Why Year-End Tax Strategies Are Hitting Bitcoin ETFs Hardest

Late-December outflows often stem from tax-loss harvesting—investors selling losers to offset gains elsewhere—combined with portfolio rebalancing ahead of 2026. Bitcoin, as the largest and most mature crypto asset, typically sees the heaviest such activity:

• Profit-Taking Peak: After 2025’s rally from sub-$60K to highs near $126K.
• Institutional Rebalancing: Funds locking in gains or rotating to underperformers.
• Altcoin Relative Strength: ETH, SOL, XRP perceived as “catch-up” plays with room to run.

Solana’s appeal stands out: average transaction fees ~$0.008 and robust network metrics (high TPS, growing DeFi TVL) continue drawing attention despite price stagnation near $125.

What This Rotation Means for Crypto Markets Heading into 2026

The inflow/outflow divergence reflects maturing market dynamics:

• Bitcoin Maturity: Acts as the “blue chip” with heavier year-end adjustments.
• Altcoin Opportunity: Perceived undervaluation and narrative tailwinds (e.g., Solana scalability, XRP regulatory clarity).
• Institutional Signals: Rotation often precedes broader rallies in laggards.
• Seasonal Pattern: January historically favors risk-on recovery post-tax selling.

While short-term, this could set up altcoin outperformance early next year.

In summary, spot Bitcoin ETFs’ $142 million outflows on December 22, 2025—contrasted with inflows to Ethereum ($84M), Solana ($7M+), and XRP ($43M+) ETFs—illustrate classic year-end tax harvesting and rotation away from 2025’s top performer. With Solana’s efficient network and growing ecosystem drawing interest despite $125 price levels, altcoin funds gain momentum. Monitor daily flow reports for continuation of this trend into 2026’s potential reset.