Bitcoin ETFs shed a record $4.57 billion over the past two months

Spot bitcoin ETFs in the U.S. logged their largest outflows on record in November and December, mirroring a nearly 20% drop in bitcoin prices over the same period.

The year-end stretch proved to be the most challenging since the spot crypto exchange-traded funds launched in January 2024. After months of strong inflows, investors reversed course, pulling billions of dollars from products that had been central to institutional participation in digital assets.

The 11 spot bitcoin ETFs saw net redemptions of $3.48 billion in November and $1.09 billion in December, bringing total two-month outflows to $4.57 billion, according to SoSoValue. The withdrawals surpassed the previous record set in February and March, when investors pulled $4.32 billion.

The sustained selling pointed to waning institutional demand and coincided with a sharp correction in bitcoin’s price. Ether ETFs also came under pressure, with U.S.-listed funds recording more than $2 billion in outflows over the same two-month period.

Despite the magnitude of the redemptions, some market observers argue the activity reflects orderly repositioning rather than panic.

“ETF outflows and continued liquidations are weighing on sentiment, but the market remains structurally sound,” said Vikram Subburaj, CEO of India-based crypto exchange Giottus. “This appears to be a phase of balance, with weaker hands exiting into year-end while stronger participants absorb supply.”

Subburaj added that prices are compressing as market participants wait for liquidity to return in January.

While bitcoin and ether ETFs lost favor, other crypto-linked funds attracted fresh capital. XRP ETFs drew more than $1 billion in inflows in November and December, while Solana-focused ETFs attracted over $500 million, highlighting a selective rotation within the crypto ETF market.