U.S. spot Bitcoin and Ethereum ETFs recorded their largest daily outflows in more than two weeks, signaling renewed institutional caution as investors trimmed risk exposure amid equity market volatility and uncertainty around global monetary policy.
Largest ETF Outflows in Weeks
Spot Bitcoin and Ethereum ETFs shed a combined $582.4 million in net outflows on Monday, according to data from Farside Investors. This marked the heaviest single-day redemption since early December and underscored how institutional investors are repositioning crypto alongside other risk assets rather than reacting to crypto-specific developments.
Bitcoin spot ETFs led the pullback, with net outflows peaking at $357.6 million in one day. Selling pressure was spread across major products, including Fidelity’s FBTC, Ark Invest’s ARKB, and Bitwise’s BITB, while BlackRock’s IBIT finished the session flat.
Ethereum spot ETFs also experienced notable redemptions, with nearly $225 million leaving the market. This was the largest single-day outflow for Ethereum ETFs since the start of the month.
ETF Flows Signal Institutional Repositioning
The ETF outflows came even as Bitcoin and Ethereum prices remained within recent trading ranges. This divergence suggests that ETF flows are increasingly reflecting how large allocators are adjusting exposure to crypto as part of broader portfolio rebalancing, rather than reacting to short-term price moves.
“Bitcoin is increasingly acting like a Nasdaq derivative in the fourth quarter,” said Farzam Ehsani, CEO of crypto trading platform VALR. “When the tech sector corrects, BTC weakens more aggressively.”
According to Ehsani, institutional investors are using spot Bitcoin ETFs as the most efficient way to scale exposure up or down when U.S. technology stocks sell off, tying crypto ETF redemptions closely to equity market de-risking.
December ETF Performance Snapshot
So far in December, U.S. spot Bitcoin ETF flows have skewed negative. Data from CoinGlass shows roughly $705 million in outflows compared with about $480 million in inflows, resulting in a net drawdown of approximately $225 million despite several strong inflow days earlier in the month.
Ethereum spot ETFs have shown a more balanced picture. Over the same period, inflows of around $411 million have been nearly offset by $403 million in outflows, leaving Ethereum ETFs close to flat overall.
Macro Pressures and Rising Yields
The recent pullback follows growing uncertainty after the U.S. Federal Reserve’s December 10 policy decision. While the Fed delivered a rate cut, it also signaled that the easing cycle could pause, raising concerns about the pace of inflation and internal disagreement within the Federal Open Market Committee.
That uncertainty has been amplified by tighter financial conditions and pressure on U.S. risk assets. The yield on the 10-year U.S. Treasury note climbed to 4.2%, its highest level since early September, while technology stocks retreated amid renewed fears of overheating in the AI sector.
Crypto Holds Range Despite Volatility
Against this backdrop, crypto markets have struggled to attract sustained inflows, even as Bitcoin and Ethereum prices avoided a sharp breakdown. According to Ehsani, Bitcoin has underperformed major U.S. equity indices over the past six months, with November marking its weakest month of the year and December shaping up as a prolonged sideways phase.
“There are attempts at growth, but sustained demand is lacking,” he noted.
Long-Term Bitcoin Outlook Remains Constructive
Despite short-term volatility and ETF outflows, Ehsani remains cautiously optimistic about Bitcoin’s longer-term outlook. He pointed to expanding global liquidity, accommodative financial conditions, and declining selling pressure from long-term holders as supportive factors.
He also emphasized that institutional interest remains intact, with ETF positions still forming a strong foundation for the market.
“Those fundamentals could become the basis for a gradual recovery in demand and an exit from Bitcoin’s current flat market,” Ehsani said.
As macro conditions evolve, ETF flows are likely to remain a key indicator of institutional sentiment toward Bitcoin and Ethereum, offering insight into how crypto fits within the broader risk landscape.
