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US Bitcoin and Ether ETFs See Major Outflows Following Brief Rebound

US Bitcoin and Ether ETFs See Major Outflows Following Brief Rebound

  • Bitcoin and Ether ETFs experience over $1 billion in outflows.
  • Altcoin ETFs like XRP and Solana see steady inflows.
  • Early-year gains for Bitcoin and Ether ETFs erased by outflows.

Spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States have experienced significant outflows, totaling over $1 billion since Tuesday. According to SoSoValue data, Bitcoin ETFs saw a combined $1.13 billion exit between Tuesday and Thursday.


This movement has reversed the previous trend of inflows, which amounted to $1.17 billion on January 2 and Monday. Meanwhile, Ether ETFs followed a similar pattern, with $258 million exiting since Wednesday after modest inflows earlier in the month.


These recent outflows indicate a shift in investor sentiment. The gains that Bitcoin and Ether ETFs experienced in the first days of January have now been wiped out. This suggests that investor optimism may have been fragile, and some investors are pulling back their exposure to crypto assets as caution spreads across the market.


Furthermore, the pattern of outflows has been consistent since the end of last year. CoinShares noted on December 29 that crypto exchange-traded products (ETPs) shed $446 million during the Christmas period, highlighting the fragile investor sentiment at the close of 2025. The new outflows in early January reflect a continuation of this cautious tone.


etfs

Source: Sosovalue

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ETF Flows Show Cooling Momentum After Mid-2025 Surge

Looking back at 2025, SoSoValue’s monthly flow data shows that both Bitcoin and Ether ETFs saw their highest levels of accumulation in July 2025. Bitcoin funds recorded over $6 billion in inflows, while Ether funds saw more than $5 billion.


However, the momentum has cooled since then. In August 2025, Bitcoin ETFs saw $750 million in outflows, followed by more volatility in September and October. Notably, November marked the second-largest outflow month of the year, with $3.48 billion exiting Bitcoin funds.


Ether ETFs mirrored this trend, with inflows slowing down after reaching peak levels in July and August. The shift in investor behavior followed a sharp market correction in October, during which a $20 billion liquidation event caused widespread deleveraging across the crypto markets.


While analysts suggested this event was a controlled correction, it clearly impacted ETF flows, leading to significant redemptions in November and December.


Altcoin ETFs Show Steady Inflows Amid Bitcoin and Ether Redemptions

While Bitcoin and Ether ETFs face increasing redemptions, altcoin-focused funds have shown more resilience. ETFs tracking altcoins such as XRP and Solana have attracted smaller but more consistent inflows. These altcoins have managed to avoid the major outflows that have plagued Bitcoin and Ether products in recent months.


XRP and Solana ETFs have steadily gained traction, suggesting that some investors are shifting their focus toward targeted crypto exposure, rather than fully exiting the market. This could signal a broader trend of diversifying portfolios within the crypto asset class.


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