Good Morning, Asia. Here’s What’s Making News in the Markets:

Welcome to the Asia Morning Briefing, your daily summary of the top stories during U.S. hours alongside an overview of market movements and analysis. For an in-depth look at U.S. markets, see CoinDesk’s Crypto Daybook Americas.

As we approach the end of the year, market dynamics in Hong Kong have shifted noticeably, particularly in the crypto sector. With many desks operating on skeleton staff due to the festive season, the focus has turned from momentum expectations to scorekeeping, marking a significant change in market sentiment.

Bitcoin ETF Sentiments

A notable highlight in the crypto arena comes from Polymarket, where traders now assign only a 2% probability that Bitcoin ETFs will surpass last year’s inflow record in 2025. In 2024, Bitcoin ETFs recorded an impressive $33.6 billion in net inflows. However, as of mid-December 2025, the current tally sits at approximately $22.5 billion, leaving a substantial gap of around $11 billion just as trading days dwindle.

Despite this challenging outlook, the past week revealed encouraging developments. ETF inflows have begun to return, even amid price declines and underperformance from altcoins. This suggests that while reaching the target of $33.6 billion may be unattainable, the structural role of ETFs in absorbing risk continues to strengthen.

Market Conditions and Inflows

Data from Glassnode indicates that U.S. spot Bitcoin ETF flows have turned positive again, rebounding to approximately $290 million over the past week. Notably, this follows a period of prior outflows and comes despite Bitcoin’s recent price dip from $94,000. Interestingly, this uptick occurs in a context of declining trading volumes, indicating a shift away from speculative trading to a more strategic, allocation-focused approach.

This evolving behavior reveals an essential trend: Bitcoin is showing resilience relative to the broader crypto market, particularly as ETFs increasingly serve as a stabilizing force. Rather than simply operating as vehicles for speculation, they demonstrate the market’s maturation by absorbing sell orders during downturns.

A Shift in the ETF Landscape

This year isn’t merely a repeat of last; instead, it represents a fundamental shift in how ETFs are perceived and utilized in the crypto space. Unlike the explosive growth seen during the initial launch phase of 2024, characterized by pent-up demand and major one-time investments, 2025 is shaped by strategic rotations and careful fee migrations amidst heightened volatility.

The narrative surrounding ETF performance now emphasizes their utility in risk absorption rather than mere price amplification. This evolving landscape highlights the importance of understanding not just the numbers but the underlying framework that supports market stability.

Market Movement Overview

As we delve into market specifics, here’s a snapshot of current conditions:

BTC: Bitcoin has stabilized over the past week, drifting back towards the $87,000 to $88,000 range after struggling near $94,000. Its relative strength compared to the wider crypto market underscores its ongoing appeal as an investment asset.

ETH: Ether has seen a notable decline, slipping to the $2,950 to $3,000 range as increased selling pressure affects higher-beta assets and market rotation favors Bitcoin.

Gold: In the realm of traditional assets, gold’s value has climbed above $4,300 in light of the New York Fed’s Empire State Manufacturing Survey, which unexpectedly fell into contraction. This development has rejuvenated demand for gold as a safe-haven asset, particularly in a volatile economic environment.

Nikkei 225: On the Asia-Pacific front, markets faced declines, closely tracking the downward movement on Wall Street. Japan’s Nikkei 225 fell 1.14%, with the broader Topix index dipping by 1.05%, reflecting investor sentiment turning away from the U.S. AI trade.

Elsewhere in Crypto

Key headlines to note include:

• The Senate has deferred the crypto market structure bill to next year, indicating ongoing regulatory discussions.
• Bitcoin has reached a one-year low in active addresses, stirring concerns about blockspace demand and overall market engagement.

Stay tuned for further updates and insights as we continue to track these developments in the financial markets.