Bitcoin and Ethereum ETFs Lose $582 Million in One Day as Funds Pull Capital

U.S.-listed spot Bitcoin and Ethereum ETFs recorded their largest combined outflows in nearly two weeks on Monday, as institutional investors reduced exposure during a renewed selloff in U.S. equities.

Bitcoin spot ETFs saw net redemptions of $357.6 million over the session, according to ETF flow data. The selling was spread across multiple products, including offerings from Fidelity, Ark Invest, and Bitwise. BlackRock’s Bitcoin ETF ended the day with little change.

Ethereum spot ETFs followed a similar pattern. Net outflows reached nearly $225 million, marking the biggest single-day reduction since early in the month.

ETF flows weaken despite stable crypto prices

The withdrawals came even as Bitcoin and Ethereum prices remained within their recent trading ranges. That divergence suggests the selling was driven by portfolio rebalancing rather than sharp moves in crypto markets themselves.

Spot ETFs have become the fastest way for large investors to adjust digital asset exposure. When equity markets come under pressure, these products are often used to reduce risk quickly.

December flows remain negative for Bitcoin ETFs

So far this month, Bitcoin ETFs have recorded more money leaving than entering. December redemptions total roughly $705 million, compared with about $480 million in inflows, leaving the segment with a net decline of around $225 million.

Ethereum ETFs have shown a more even pattern. Inflows and outflows have been close to balanced, leaving total exposure near flat for the month.

Equity and rate pressures weigh on positioning

The latest ETF outflows coincided with renewed uncertainty around U.S. interest rates and a pullback in technology stocks. Yields on 10-year U.S. Treasury notes climbed to around 4.2%, the highest level since early September, tightening financial conditions across markets.

As equity volatility increased, crypto ETFs were sold alongside other risk assets. Unlike earlier selloffs driven by forced liquidations, recent withdrawals reflect deliberate position trimming by institutions.

Crypto demand remains muted in the near term

Despite avoiding a sharp price breakdown, crypto markets have struggled to attract consistent new buying. Trading activity has remained thin, and price rebounds have been met with selling.

ETF holdings remain substantial overall, but recent flow data shows that institutional investors are prioritizing flexibility and liquidity while macro conditions remain unsettled.

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