U.S.-listed spot Bitcoin ETFs recorded a record net outflow of $4.57B across November and December 2025, the most severe two-month withdrawal since their January 2024 launch. The sell-off coincided with a roughly 20% decline in Bitcoin’s market price and a notable thinning of liquidity.
Flow data show $3.48B exited Bitcoin ETFs in November 2025 and a further $1.09B left in December 2025. For the full year, spot Bitcoin ETFs posted about $57.4B of inflows; after the two-month outflow, net inflows stood at roughly $52.83B for 2025.
The movement reduced but did not erase strong year-to-date demand: cumulative inflows for 2025 remained substantial, leaving the sector with a positive net for the full year despite the late-year reversal.
Market participants and analysts framed the late-2025 withdrawals as a mix of strategic rebalancing and event-driven selling rather than pure panic. Bitcoin observers used the phrase “weak hands” to describe shorter-term holders exiting positions while larger balance sheets absorbed supply.
Why investors rotated capital
Several drivers were highlighted: profit-taking after strong Q3 performance, year-end tax-loss harvesting, shifting macroeconomic expectations for interest rates, and increased regulatory scrutiny prompting managers to rebalance.
The expanding slate of spot crypto ETFs also diverted capital within the asset class — spot Ether funds recorded large inflows earlier in 2025, while XRP and Solana ETFs drew meaningful allocations during November–December.
The episode eclipsed the prior two-month outflow record of $4.32B from Feb–Mar 2024, underlining that ETF flows can swing materially even as institutional adoption grows.
Investors and product teams are now watching early-January liquidity and flow data closely, which will function as a test of whether the late-year rotation is a temporary consolidation or the start of a broader shift in institutional positioning. For compliance and custody operations, the episode underscores the need for robust liquidity planning and clear governance around rebalancing and redemption procedures.
