Once-hot U.S.-listed spot crypto exchange-traded funds (ETFs) suffered their worst period on record in the final two months of 2025 as investors withdrew billions, capping a brutal end to the year for a product that has been a key driver of institutional adoption.
The 11 cash ETFs saw a total net outflow of $1.09 billion in December, following a much larger outflow of $3.48 billion in November. That amounts to a combined two-month buyback worth $4.57 billion, the largest since their debut in January 2024, according to data source SoSoValue.
The wave of exits indicates a marked decline in institutional appetite for the leading cryptocurrency and coincided with a 20% drop in the price of bitcoin over the same period. The previous worst two-month period occurred in February and March, when investors withdrew a total of $4.32 billion.
U.S.-listed Ether ETFs also had a rough end to the year, with investors withdrawing more than $2 billion from these funds in November and December.
These capital outflows appear to paint a bleak picture of the market, but some experts disagree.
“ETF outflows and regular liquidations are weighing on sentiment, but the structure does not resemble a panic. Instead, it appears to be a market in equilibrium, as weak hands exit late in the year and stronger balance sheets absorb supply,” Vikram Subburaj, CEO of India-based exchange Giottus, said in an email.
“The price is compressing as both sides wait for liquidity to return in January,” Subburaj added.
While Bitcoin and Ether ETFs have fallen out of favor with investors, XRP ETFs attracted over $1 billion in inflows in November and December. Meanwhile, Solana’s SOL ETFs have raised over $500 million.
