Institutional demand for Bitcoin and Ethereum is showing clear signs of fatigue, with new data from Glassnode and SoSoValue indicating that ETF inflows have remained negative for over six weeks.
This trend reflects a broader contraction in liquidity in crypto markets, as risk appetite diminishes and allocators take a more cautious stance as the end of the year approaches.
ETF Flows Turn Negative on BTC and ETH
Glass node Latest readings show that the 30-day moving average of net flows for Bitcoin and Ethereum ETFs turned negative in early November and has not recovered since.
For most of 2025, ETF activity was a major source of liquidity, particularly during the July-September period when inflows surged and helped push BTC above $110,000 and ETH above $4,500.
But since November, the dynamic has been significantly reversed. Daily flows were dominated by consistent red bars, indicating sustained outflows and reduced participation from larger allocators.
Bitcoin ETFs face some of the biggest capital outflows
Daily data from SoSoValue shows that Bitcoin ETF products saw a net outflow of $142.19 million today, continuing a trend of withdrawals seen in November and December.
Source: Glassnode
The total net assets of BTC ETFs also fell to $114.99 billion, a significant drop from their summer peak.
This drop reflects falling spot prices, with Bitcoin now trading around $88,351, unable to reclaim the $90,000 level despite several attempts.
The last significant wave of inflows occurred in mid-October, but since then outflows have exceeded intermittent green peaks.
Ethereum ETFs Show Mixed Short-Term Flows But Weakening Trend
Ethereum ETFs saw $84.59 million in inflows today, but this single data point comes against a much larger backdrop of outflows.
Source: Glassnode
The 30-day SMA for ETH ETF flows is still firmly negative, confirming that recent buying has not been strong enough to reverse the broader trend.
The ETH ETF’s assets under management stand at $18.20 billion, down from its peak during August’s surge.
The price of ETH, now around $2,976, continues to fall as demand for ETFs decreases and liquidity decreases.
Contraction of liquidity and reduction of year-end risks
On-chain and ETF metrics align to show a consistent pattern:
- Allocators have reduced their exposure.
- Risk appetite remains moderate.
- The strong capital inflow cycle of the summer has completely subsided.
Much of this cooling can be attributed to year-end rebalancing by funds, weaker macroeconomic liquidity, and waning post-ETF approval euphoria that drove capital inflows earlier in the year.
The current environment resembles previous phases where institutional investors temporarily withdrew before repositioning once volatility stabilized.
What this means now for BTC and ETH
Both assets remain very sensitive to ETF flows. With sustained capital outflows and a reduction in assets under management on both sets of products:
- Upward momentum remains limited
- Prices could move sideways until demand returns
- Any future positive catalyst, macro or regulatory, could spark further capital inflows.
For now, the data points to a period of cooling rather than a structural release.
However, given that ETF flows will be the main driver of liquidity for cryptocurrencies in 2025, a return to positive territory will be essential for any strong recovery in early 2026.
Final Thoughts
- ETF outflows suggest institutions are reducing risk rather than abandoning the market, indicating a temporary contraction in liquidity.
- A sustained return of positive flows may be necessary before BTC and ETH can regain strong bullish momentum.
