Bybit has released its 29th Proof of Reserves (PoR) report, offering a mid-December snapshot of how user balances have shifted across major assets.
The data, taken on December 17, highlights a clear rotation in positioning: exposure to Bitcoin and Ether declined, while stablecoin balances continued to grow.
Bitcoin and Ether Holdings Pull Back
According to the report, user Bitcoin holdings fell to roughly 63,200 BTC, representing a 5.49% decline compared with the November 19 snapshot. In absolute terms, this reflects a reduction of 3,674 BTC held on the platform.
Ether followed a similar path. User ETH balances dropped to approximately 536,800 ETH, down 6.67%, or 38,361 ETH, over the same period. Together, these declines suggest users trimmed spot exposure to major crypto assets during a choppy market environment, rather than withdrawing funds from the exchange altogether.
Bybit released its 29th Proof of Reserves report (snapshot date: Dec. 17). User BTC holdings stood at about 63,000 BTC, down 5.49% from the previous snapshot on Nov. 19 (a decrease of 3,674 BTC). User ETH holdings were about 537,000 ETH, down 6.67% (down 38,361 ETH). User USDT… pic.twitter.com/lXjHSYCE8T
— Wu Blockchain (@WuBlockchain) December 25, 2025
Stablecoins Tell a Different Story
While BTC and ETH balances moved lower, stablecoin holdings surged. USDT balances climbed to around 6.05 billion, marking an 8.13% increase, equivalent to roughly $450 million in net inflows.
The data also shows USDE balances rising by more than 15%, reinforcing the same trend. Capital remained on the platform but shifted toward lower-volatility assets. This type of rotation is typical when traders reduce directional risk while keeping liquidity readily available for future opportunities.
What the Data Highlights
The reserve comparison makes the divergence clear:
- BTC and ETH: net month-over-month outflows
- USDT and USDE: strong inflows
- Key takeaway: defensive positioning, not platform exit
Rather than signaling stress, the data points to a cautious stance as users park funds in stablecoins amid uncertain price action.
Regulatory Shifts Shape Bybit’s Global Footprint
The PoR update comes as Bybit continues to reshape its global operations in response to regulatory pressure and opportunity.
- Bybit halted new user registrations in Japan on October 31, 2025, following pressure from the Financial Services Agency. Existing accounts are expected to face phased service restrictions beginning in 2026.
- Europe and the UK: In contrast, the exchange is expanding its regulated presence. In September, Bybit’s EU arm submitted a MiFID II license application in Austria to offer regulated derivatives. In December, the platform also re-entered the UK market under a promotional arrangement with an FCA-authorized firm.
- United Arab Emirates: In October, Bybit became the first crypto exchange to receive a full Virtual Asset Platform Operator license from the UAE’s Securities and Commodities Authority, strengthening its institutional positioning in the region.
The Bigger Picture
Bybit’s latest Proof of Reserves does not indicate capital flight. Instead, it reflects a risk-off rotation within the platform, with users favoring stablecoins while market conditions remain volatile. Combined with the exchange’s shifting regulatory footprint, exiting Japan while expanding across Europe, the UK, and the UAE, the snapshot shows a platform adapting alongside its users, not losing them.
