Once wildly popular, U.S.-listed cryptocurrency spot exchange-traded funds (ETFs) endured their worst stretch on record in the final two months of 2025 as investors cashed out billions, capping a brutal end to the year for a product that has been a key driver of institutional adoption.
The 11 spot ETFs cumulatively recorded a net outflow of $1.09 billion in December, after a much higher figure of $3.48 billion in November. That’s equivalent to a combined two-month payback worth $4.57 billion, the largest since its debut in January 2024, according to data source SoSoValue.
The wave of outflows 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 worst previous two-month period occurred in February and March, when investors withdrew a total of $4.32 billion.
US-listed ether ETFs also had a rough end to the year, as investors withdrew more than $2 billion from these funds during November and December.
These departures seem to paint a bleak picture of the market, but some experts disagree.
“ETF outflows and continued liquidations are weighing on sentiment, but the structure does not resemble panic. Instead, this appears to be a market in balance, as weak hands are exiting towards the end of the year and stronger balance sheets are absorbing 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 fell out of favor with investors, XRP ETFs attracted more than $1 billion in inflows in November and December. Meanwhile, Solana’s SOL ETFs raised more than $500 million.
