Record-breaking withdrawals from U.S.-listed spot crypto ETFs suggest institutional demand for digital assets has sharply deteriorated, reinforcing signs of a deepening market downturn.
Spot exchange-traded funds tracking bitcoin and ether have logged persistent outflows over the past four months, marking the longest stretch of monthly declines since their launch in January 2024. According to data from SoSoValue, investors have pulled $6.39 billion from bitcoin ETFs during that period.
Ether-focused products have faced similar pressure, shedding $2.76 billion over the same four-month window.
The scale and duration of these withdrawals point to a significant pullback in institutional participation — a shift that mirrors steep price declines in the underlying assets. Bitcoin, the largest digital asset by market capitalization, climbed above $126,000 in early October before tumbling to roughly $67,000, nearly halving in value. Ethereum has fared even worse, plunging more than 60% from highs above $4,950 reached in August last year.
Spot ETFs became the most transparent gauge of institutional crypto exposure after debuting in early 2024. Inflows surged throughout the year and accelerated following the U.S. election victory of Donald Trump, whose pro-crypto stance fueled optimism and contributed to a strong rally in both bitcoin and ether.
That momentum unraveled after the sharp early October sell-off, which market participants linked in part to pricing dislocations on offshore exchange Binance. While recent sessions have recorded occasional inflows, analysts caution that a sustained return of capital will be necessary to support any durable recovery in crypto prices.
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