United States Bitcoin Spot ETF Sees $4.57 Billion in Net Outflows Over the Past Two Months

U.S. Bitcoin spot ETFs experienced their worst two-month stretch on record through November and December, with net outflows totaling $4.57 billion. This marked the largest outflow since the ETFs were launched in January 2024. The losses occurred as Bitcoin’s price dropped 20% during the same period, signaling a decline in institutional interest according to financial reports.

Ethereum ETFs also faced significant outflows, losing over $2 billion during the final two months of 2025. This mirrored the trend observed in Bitcoin ETFs and highlighted a broader decline in institutional appetite for major cryptocurrencies. However, XRP and Solana ETFs stood out by attracting inflows of $1 billion and $500 million, respectively according to market data.

The outflows indicate a cautious stance among investors ahead of year-end portfolio adjustments. Analysts note that such movements are often tied to tax-loss harvesting and profit-taking, rather than a fundamental shift in market sentiment.

Why Did This Happen?

The net outflows were attributed to several factors, including year-end rebalancing by institutional investors and reduced demand for Bitcoin due to a bearish price environment. The data also revealed that BlackRock’s IBIT led the outflows with $99.05 million in redemptions, followed by Ark & 21Shares’ ARKB with $76.53 million.

Farside Investors’ data showed that Bitcoin ETFs posted a net outflow of $19.3 million on December 29, continuing a losing streak that began earlier in the month. During December alone, spot Bitcoin ETFs saw over $1.1 billion in net outflows according to financial reports.

How Did Markets Respond?

The market response was mixed, with some analysts suggesting the outflows reflected a market in equilibrium rather than panic. Vikram Subburaj, CEO of Giottus exchange, noted that the outflows were a normal part of year-end adjustments, with weaker positions exiting and stronger balance sheets absorbing supply according to financial analysis.

Despite the outflows, some funds like Fidelity’s FBTC and FETH managed to attract inflows. Fidelity’s Bitcoin Fund saw a $5.7 million net inflow on December 29, while its Ethereum Fund pulled in $3.65 million according to market data.

What Are Analysts Watching Next?

Analysts are closely watching whether the outflows will persist into 2026 or reverse as portfolio strategies reset. The coming weeks will be critical in determining whether this marks a brief pause or a more significant shift in institutional sentiment toward spot ETFs according to market analysis.

Additionally, the market is monitoring the impact of the Federal Reserve’s liquidity injections, including a $74.6 billion injection through the Standing Repo Facility on December 31, which is the largest single-day usage since the pandemic according to financial reports. While this was characterized as seasonal balance sheet management, it signaled potential flexibility in monetary policy that could benefit risk assets like Bitcoin according to financial analysis.

The broader market remains in a state of cautious optimism, with some experts forecasting a potential rebound in ETF inflows as liquidity returns in January. However, analysts also note that Bitcoin and Ethereum ETF flows have remained negative since early November, indicating a broader contraction in crypto market liquidity.