Institutional Retreat From Crypto Accelerates as Bitcoin and Ethereum ETF Outflows Signal Weakening Demand

The crypto market is sending mixed signals as institutional capital continues its exit from spot Bitcoin and Ethereum ETFs, according to recent data analysis. While Bitcoin’s dominance remains a key focus for market watchers, the underlying demand from large investors tells a different story—one of caution and pullback.

Glassnode’s latest research reveals a troubling pattern: the 30-day simple moving average for net inflows across both BTC and ETH ETFs has turned negative since early November, marking a sustained period of institutional disengagement. This shift suggests that major players who once drove adoption are now reassessing their positions.

The numbers paint a clearer picture. U.S. spot Bitcoin ETFs are currently locked in a four-day redemption streak, with investors pulling out $188.6 million in the most recent trading session, according to Farside Investors. Meanwhile, Ethereum ETFs weren’t spared from the selling pressure, recording $95.5 million in outflows on December 23 alone, despite a brief recovery earlier that same week.

Even products from heavyweight players like BlackRock show this ambivalence. The firm’s IBIT product did attract some buying interest on December 18 and December 22, yet these moments of strength remain isolated blips against an otherwise bearish backdrop for institutional flows.

The takeaway is straightforward: while Bitcoin’s dominance metrics capture headlines, the actual behavior of sophisticated investors reveals hesitation and reduced conviction in the near term.