ETF outflows signal institutional retreat from Bitcoin and Ethereum

Glassnode’s analysis shows the 30-day simple moving average of net flows into U.S. spot Bitcoin and Ether ETFs turned negative in early November and has remained below zero through December 2025, a continuation of outflows that analysts interpret as a sign of muted institutional engagement with crypto markets.

The outflows cover products that track Bitcoin and Ethereum, suggesting that institutional allocators — such as hedge funds, asset managers, and other regulated investors — have pulled capital from crypto ETF exposure amid broader market uncertainty and drying liquidity. ETF flows are widely watched in crypto because they often lag underlying spot movements but reflect institutional sentiment, and the persistence of red inflows on the 30-day average indicates that longer-term allocators are acting cautiously.

Data from secondary market analytics shows that aggregate Bitcoin ETF net flows were negative for multiple consecutive trading days, reinforcing the trend of capital moving out of crypto investment products rather than into them. At the same time, BlackRock’s iShares Bitcoin Trust (IBIT) registered minor recent inflows, standing out among peers in a broader climate of ETF withdrawals, though total flows for many products remain in net red territory.

Industry commentary tied to the flow data noted that crypto funds recorded approximately $952 million in net outflows in the past week, and that investors have withdrawn capital in several of the last ten weeks, underscoring persistent selling pressure within ETF products used by institutional participants.

Analysts said the negative ETF flow environment aligns with a liquidity contraction in crypto markets following mid-October price declines, when Bitcoin and other digital assets began trending lower and market activity thinned. Because ETF flows typically lag spot performance, the prolonged outflows reflect caution among institutional investors even as prices attempt to stabilize.

Although the broader trend shows outflows, IBIT has attracted substantial capital since its launch and maintained position on Bloomberg’s annual ETF flow leaderboard despite negative returns, suggesting selective confidence in certain flagship products even amid widespread redemptions.

ETFs that hold Bitcoin and Ethereum provide regulated vehicles for institutional and retail investors to gain exposure to digital assets without holding them directly. Net flows into and out of these products are often used as an indicator of demand from large allocators because they aggregate significant institutional capital moving into or out of crypto exposure. Persistent outflows can indicate shifting risk appetite among these investors and influence broader market liquidity conditions.