Bitcoin News Today: Bitcoin ETFs Bleed $952M in Outflows as Institutional Disengagement Weighs on Crypto Market

Bitcoin and Ethereum exchange-traded funds (ETFs) have experienced a prolonged period of outflows since early November, signaling a shift in institutional sentiment toward the crypto market. According to analytics firm Glassnode, the 30-day simple moving average of net flows into U.S. spot Bitcoin and Ether ETFs has turned negative and remained so for weeks. This trend, which has persisted through December, reflects what Glassnode describes as a phase of muted institutional participation and partial disengagement as data shows. The outflows have coincided with a broader market downturn, with both BTC and ETH prices declining since mid-October 2025 according to market analysis.

The sustained outflows are being closely monitored as ETFs have historically served as a bellwether for institutional crypto activity. Glassnode noted that the trend reinforces a broader liquidity contraction in the crypto space, as major allocators appear to be withdrawing capital amid a bearish market environment according to financial reports. Coinglass data shows that aggregate Bitcoin ETF flows have been negative for four consecutive days, with total outflows reaching $952 million in the past week according to market data. This represents a continuation of a six-week trend in which investors have pulled capital from crypto ETFs in six of ten weeks as reported.

Why the Standoff Happened

The recent outflows are linked to several macroeconomic and market-specific factors. First, the broader crypto market has seen a significant correction since mid-October, with Bitcoin and Ethereum both posting sharp declines. ETF flows typically lag spot price movements, and the sustained downward pressure has led to a wave of redemptions from institutional investors as market data shows. Second, year-end portfolio rebalancing has added to the selling pressure. Analysts suggest that institutions are taking profits and shifting capital to other asset classes, particularly as gold, silver, and traditional equities have outperformed crypto according to financial analysis. Third, tax-loss harvesting has played a role in accelerating redemptions, as investors look to offset gains by selling losing positions.

BlackRock's iShares Bitcoin Trust (IBIT) has been one of the few bright spots in the ETF landscape. Despite the broader trend, the fund has seen minor inflows in the past week and has attracted $62.5 billion in total inflows since its launch, far outpacing rival Bitcoin ETFs . Bloomberg ETF analyst Eric Balchunas highlighted the resilience of IBIT, noting that it ranks sixth on the 2025 Flow Leaderboard despite posting a negative return for the year . This performance, he argues, is a positive sign for the long-term appeal of Bitcoin ETFs, even in a challenging market.

How Markets Reacted

The continued outflows have contributed to increased volatility in the crypto market. Bitcoin, which had previously broken through the $100,000 level, has struggled to regain that momentum amid weak institutional demand. As of December 2025, the price hovered near $88,351, with liquidity tightening across major exchanges . Ethereum has followed a similar trajectory, with ETFs recording sporadic inflows but maintaining a negative 30-day average . The broader impact is being felt in the derivatives market, where daily liquidations have reached record levels, with over $19 billion wiped out in a single day during the October market crash .

Retail investors have also reacted to the ETF outflows, with some taking a more cautious approach. XRP, for instance, has seen steady inflows into its ETFs, with net assets crossing $1.25 billion, despite a muted price action in the $1.85–$1.91 range . This divergence between ETF demand and spot price movement underscores the growing role of institutional products in shaping market sentiment, even as retail participation remains a key driver of short-term volatility.

What This Means for Investors

For institutional investors, the current outflows represent a strategic pause rather than a permanent exit from crypto. While the market has seen a contraction in liquidity, the resilience of funds like IBIT and the continued inflows into XRP ETFs suggest that long-term interest remains intact . BlackRock's ability to attract over $62 billion in inflows during a negative year indicates strong potential for a rebound if market conditions improve . Additionally, the firm's dominance in the ETF space has allowed it to outperform traditional assets like gold, further reinforcing its role as a key player in the crypto-ETF landscape.

Retail investors, on the other hand, should remain cautious. The current environment is characterized by high volatility and mixed signals, with Bitcoin and Ethereum both struggling to break through key resistance levels. However, the continued inflows into certain ETFs and the broader resilience of the crypto ecosystem suggest that a long-term recovery remains possible. Investors should monitor macroeconomic developments, particularly Federal Reserve policy, as well as regulatory news that could influence ETF flows and price action in early 2026.