Recent data reveals that institutional demand for Bitcoin and Ethereum is exhibiting noticeable signs of fatigue, as ETF inflows have been negative for over six weeks. The trend indicates a wider liquidity contraction within crypto markets, as risk appetite diminishes and investors adopt a more cautious approach as the year draws to a close. According to latest data, the 30-day moving average of net flows for Bitcoin and Ethereum ETFs turned negative in early November and has remained in that state since. Throughout much of 2025, ETF activity emerged as a significant driver of liquidity—especially during the July to September period when inflows skyrocketed, propelling BTC past $110k and ETH beyond $4,500. However, since November, the momentum has taken a significant downturn. Daily flows have shown a consistent trend of red bars, signaling ongoing outflows and diminished engagement from major investors.
According to data, Bitcoin ETF products experienced a net outflow of $142.19 million today, continuing a trend of withdrawals observed throughout November and December. The total net assets of BTC ETFs have decreased to $114.99 billion, marking a significant decline from their summer peak. The downturn reflects the drop in spot prices, as Bitcoin is currently trading at approximately $88,351, struggling to regain the $90k mark despite several efforts. The most significant surge of inflows took place in mid-October; however, subsequent outflows have eclipsed the occasional green spikes that followed.
Ethereum ETFs experienced inflows of $84.59 million today; however, this figure is set against a wider context of outflows. The 30-day SMA for ETH ETF flows remains decidedly negative, indicating that the recent buying activity has not been sufficient to alter the broader trend. The AUM of the ETH ETF currently sits at $18.20 billion, a decline from the peak observed during the influx of investments in August. ETH’s price, currently sitting at approximately $2,976, is experiencing a downward trend as ETF demand diminishes and liquidity becomes scarce. On-chain and ETF metrics are converging to reveal a steady trend:
The recent cooling in the market can largely be linked to year-end rebalancing activities by funds, a decline in macroeconomic liquidity, and the diminishing excitement following the ETF approval that had previously spurred inflows earlier this year. The current environment mirrors earlier phases when institutional investors took a brief hiatus before re-entering the market as volatility began to stabilize. Both assets continue to exhibit significant sensitivity to ETF flows. Amid ongoing outflows and a decline in AUM across both categories of products: Any forthcoming positive catalyst, whether macroeconomic or regulatory, has the potential to ignite renewed inflows. The current data indicates a cooling phase instead of a fundamental rejection. However, with ETF flows serving as the primary liquidity driver for crypto in 2025, a return to positive territory will be crucial for any robust recovery in early 2026. ETF outflows indicate that institutions are de-risking instead of exiting the market, pointing to a temporary liquidity contraction. A consistent influx of positive flows might be necessary for BTC and ETH to reclaim robust upward momentum.