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 more than six weeks.
The trend reflects a broader liquidity squeeze in the crypto markets, as risk appetite declines and allocators take a more cautious stance heading into the end of the year.
ETF flows turn negative on BTC and ETH
from Glassnode The latest readings show that the 30-day moving average of net flows for both Bitcoin and Ethereum ETFs turned negative in early November and has not recovered since.
For most of 2025, ETF activity acted as a major source of liquidity, especially during the July-September period when inflows soared and helped BTC above $110,000 and ETH above $4,500.
But since November, the momentum has shifted sharply. The daily flows are dominated by persistent red bars, indicating continued outflows and reduced participation of larger allocators.
Bitcoin ETFs are seeing some of the heaviest outflows
Daily data from SoSoValue shows that Bitcoin ETF products recorded net outflows of $142.19 million today, continuing a pattern of withdrawals in November and December.
Source: Glassnode
The total net assets of BTC ETFs have also fallen to $114.99 billion, significantly less than their summer peak.
The decline mirrors the decline in spot prices, with Bitcoin now trading around $88,351 and unable to regain the $90,000 level despite multiple attempts.
The last significant wave of inflows occurred in mid-October, but since then outflows have overcome the periodic green peaks.
Ethereum ETFs show mixed short-term flows, but a weakening trend
Ethereum ETFs saw inflows of $84.59 million today, but that one data point plays out against a much broader backdrop of outflows.
Source: Glassnode
The 30-day SMA for ETH ETF flows is still clearly negative, confirming that the recent buying has not been strong enough to reverse the broader trend.
The ETH ETF’s AUM stands at $18.20 billion, down from the high reached during August’s surge in inflows.
The price of ETH, now around $2,976, continues to fall as ETF demand decreases and liquidity diminishes.
Liquidity contraction and risk reduction at the end of the year
On-chain and ETF metrics align and show a consistent pattern:
- Allocators have reduced exposure.
- Risk appetite remains moderate.
- The strong inflow cycle of the summer has completely calmed down.
Much of this cooldown can be attributed to year-end rebalancing by funds, weaker macroeconomic liquidity and waning euphoria following the ETF approval that fueled inflows earlier this year.
The current environment resembles previous phases where institutional investors temporarily took a step back before repositioning once volatility stabilized.
What this means for BTC and ETH now
Both assets remain highly sensitive to ETF flows. With continued outflows and shrinking assets under management for both types of products:
- The upward momentum remains limited
- Prices may trade sideways until demand returns
- Any future positive catalyst, macroeconomic or regulatory, could lead to renewed inflows
For now, the data points to a cooling-off period rather than a structural rejection.
However, with ETF flows set to be crypto’s dominant liquidity driver by 2025, a return to positive territory will be essential for a strong recovery in early 2026.
Final thoughts
- ETF outflows indicate that institutions are reducing risk rather than exiting the market, signaling a temporary contraction in liquidity.
- A sustained return of positive flows may be necessary before BTC and ETH can regain strong upside momentum.