Once super-popular U.S.-listed spot crypto exchange-traded funds (ETFs) suffered their worst performance ever in the final two months of 2025 as investors withdrew billions of dollars, capping a brutal year-end for a product that has been a major driver of institutional adoption.
Cumulatively, the 11 spot ETFs recorded net outflows of $1.09 billion in December, following strong outflows of $3.48 billion in November. That’s a combined two-month redemption worth $4.57 billion, the largest since its debut in January 2024, according to data source SoSoValue.
The wave of outflows signals a marked decline in institutional investor appetite for the leading cryptocurrency and coincides with a 20% drop in Bitcoin prices over the same period. The worst two months so far were February and March, when investors withdrew a total of $4.32 billion.
U.S.-listed Ether ETFs also had a tough year-end as investors withdrew more than $2 billion from these funds between November and December.
While these outflows paint a picture of a bleak picture for the market, some experts disagree.
“While ETF outflows and steady liquidations are weighing on sentiment, the structure does not resemble panic. Rather, the market appears to be in balance as weaker stocks exit towards the end of the year and stronger balance sheets absorb supply,” Vikram Subraj, CEO of India-based Geotas Exchange, said in an email.
“Prices are compressing as both sides wait for liquidity to return in January,” Subraj added.
While Bitcoin and Ether ETFs have fallen out of favor with investors, the XRP ETF saw more than $1 billion in inflows in November and December. Meanwhile, Solana’s SOL ETF has raised more than $500 million.
