Bitcoin’s institutional momentum has hit its first major rough patch. Over the final 60 days of 2025, Bitcoin Spot ETFs saw a record of $4.57 billion in net outflows. This marks the most significant retreat of institutional capital since the products launched in January 2024.
An ETF (or Exchange-Traded Fund) is an investment product that tracks the price of an asset, like Bitcoin or Ether, and trades on traditional stock exchanges. It allows investors to gain exposure to the asset without actually holding it directly. Because ETFs are a key vehicle for institutional investment, shifts in their flows can offer a clear signal of broader market sentiment.
And this sudden pullback highlights exactly that: a change in market sentiment, as the early-year “buy-the-dip” mindset gives way to cautious de-risking.
Put into context, according to data source SoSoValue, nearly $3.5 billion of those exits came in November alone, pointing to a sharp shift in market dynamics. December followed with a further $1.09 billion in net outflows across 11 spot ETFs, pushing the two-month total to $4.57 billion, the largest withdrawal since spot Bitcoin ETFs launched in early 2024.
This reflects a clear pullback in institutional demand, coinciding with a roughly 20% drop in Bitcoin’s price. That context makes the size of the move even more notable, surpassing the prior worst two-month stretch in February and March, when $4.32 billion exited the market.
Ether ETFs listed in the U.S. were not spared either. They closed out the year under pressure, with investors withdrawing more than $2 billion across November and December.
While these outflows might suggest a grim market, some experts see a more balanced picture. According to Vikram Subburaj, CEO of India-based Giottus exchange, "ETF outflows and steady liquidations are weighing on sentiment, but the structure does not resemble panic. Instead, this appears to be a market in equilibrium, as weak hands are exiting into year-end and stronger balance sheets are absorbing supply." This means that price is compressing as both sides wait for liquidity to return in January.
The outflows also highlight a rotation of institutional capital. Although BTC and ETH saw withdrawals, emerging altcoin ETFs drew fresh interest. XRP ETFs pulled in over $1 billion in November and December, with SOL-linked ETFs attracting more than $500 million over the same period. The pattern suggests that even though institutional appetite for Bitcoin has cooled, capital is flowing into new opportunities, signalling a reshaping of crypto investment strategies rather than an outright retreat.
David Adubiina
