Institutional Outflows Continue for Bitcoin and Ethereum ETFs Amid Decreased Demand

Recent data indicates a decline in institutional interest for Bitcoin and Ethereum, with negative ETF inflows persisting for over six weeks. This trend points to a broader liquidity squeeze across cryptocurrency markets as caution prevails among investors heading into year-end.

Key Takeaways

Bitcoin and Ethereum ETFs have experienced consistent outflows over the last six weeks.
The 30-day moving average of net flows for both assets turned negative in early November.
Bitcoin ETFs reported a net outflow of $142.19 million today, with total assets dropping significantly.
Although Ethereum ETFs showed a single instance of inflow today, the overall trend remains downwards.
A liquidity contraction and cautious rebalancing by funds are contributing to these trends, indicating a potential cooling period ahead for both cryptocurrencies.

Bitcoin and Ethereum ETFs see persistent outflows as institutional appetite weakens

Institutional Demand for Bitcoin and Ethereum Weakens

Institutional interest in Bitcoin and Ethereum is clearly diminishing. New data from Glassnode and SoSoValue suggests that ETF inflows have remained negative for over six weeks. This decline reflects a wider contraction of liquidity in the crypto market, as appetite for risk decreases and institutional investors adopt a more cautious approach as the year draws to a close.

Negative ETF Flows for Bitcoin and Ethereum

According to Glassnode’s latest reports, the 30-day moving average for net flows for both Bitcoin and Ethereum ETFs turned negative in early November and has not rebounded since. For much of 2025, ETF activity was a significant source of liquidity, especially between July and September, when inflows surged, helping to elevate Bitcoin above $110,000 and Ethereum over $4,500. However, since November, the trend has sharply reversed, with daily flows dominated by persistent outflows, suggesting reduced participation from larger investors.

Significant Outflows from Bitcoin ETFs

Recent data from SoSoValue highlights that Bitcoin ETF products reported a net outflow of $142.19 million today, continuing a trend of withdrawals noted throughout November and December.

Bitcoin ETF trend

The total net assets in Bitcoin ETFs have fallen to $114.99 billion, significantly down from their peak in the summer. This decline coincides with a drop in Bitcoin prices, which is currently trading around $88,351, unable to recover to the $90,000 mark despite numerous attempts. The last substantial wave of inflows was recorded in mid-October, but since then, outflows have consistently overshadowed any brief spikes in inflow.

Mixed Signals from Ethereum ETFs

Ethereum ETFs reported inflows of $84.59 million today; however, this single data point is overshadowed by a broader trend of ongoing outflows.

Ethereum ETF trend

The 30-day simple moving average for ETH ETF flows remains firmly negative, showing that the recent influx of buying has not been strong enough to change the overall trend. The assets under management (AUM) for the Ethereum ETF is now at $18.20 billion, down from the high reached during a surge of inflows in August. Ethereum's price is currently around $2,976, continuing to decline as demand for the ETF falters and liquidity shrinks.

Effects of Liquidity Contraction and Caution by Investors

Both on-chain and ETF metrics are aligning to point out a consistent trend: this cooling off can largely be attributed to year-end fund rebalancing, weaker macroeconomic liquidity, and the declining excitement from post-ETF approval, which previously spurred inflows earlier in the year. This situation resembles earlier periods where institutional investors pulled back temporarily before readjusting once market volatility stabilized.

Implications for Bitcoin and Ethereum

Both Bitcoin and Ethereum continue to be highly responsive to ETF flows. With ongoing outflows and decreasing AUM in both asset classes, the current data suggests a cooling period, rather than a fundamental rejection. However, given that ETF flows have been the main liquidity drivers in 2025, a return to positive inflows will be crucial for a robust market recovery as we move into early 2026.

Final Thoughts

As the landscape changes for Bitcoin and Ethereum ETFs, the focus will need to shift towards the inflow dynamics. Understanding the underlying factors affecting institutional demand will be key in navigating the upcoming market conditions.