U.S. Spot Crypto ETFs Face Record Outflows in Late 2025 as Investor Sentiment Shifts

U.S.-listed spot cryptocurrency exchange-traded funds (ETFs), once seen as a major catalyst for institutional crypto adoption, ended 2025 on a notably weak note. After a strong start earlier in the year, these products experienced their worst outflow streak on record during November and December, signaling a shift in investor sentiment across the digital asset market.

According to data from SoSoValue, the 11 U.S.-listed spot crypto ETFs recorded a net outflow of approximately $3.48 billion in November, followed by an additional $1.09 billion in December. The combined $4.57 billion in redemptions marks the largest two-month withdrawal since the ETFs launched in January 2024. This surpassed the previous record outflow of $4.32 billion seen in February and March, highlighting the severity of the year-end slowdown.

The heavy ETF outflows coincided with a sharp decline in bitcoin prices, which fell roughly 20% over the same two-month period. The synchronized drop in prices and fund flows suggests a cooling of institutional demand for bitcoin, at least in the short term. Ether ETFs mirrored this trend, as U.S.-listed ether funds saw more than $2 billion withdrawn across November and December, adding to the broader sense of caution among crypto investors.

Despite the negative headline numbers, some market participants argue that the situation does not reflect panic selling. Vikram Subburaj, CEO of the India-based Giottus exchange, noted that while ETF outflows and liquidations are pressuring sentiment, the market structure appears relatively stable. He described the current phase as one of equilibrium, where weaker hands are exiting ahead of year-end while stronger investors absorb supply, potentially setting the stage for renewed liquidity in January.

Interestingly, not all digital asset ETFs struggled. XRP-focused ETFs attracted more than $1 billion in inflows during November and December, while Solana-based SOL ETFs brought in over $500 million. These contrasting trends suggest that investor interest is rotating rather than disappearing, with capital flowing toward select altcoin ETFs even as bitcoin and ether products face near-term headwinds.