Bitcoin ETFs Bleed Billions: A Gogolian Tale of Financial Woe

by

The Market’s Misfortunes:

Oh, the lamentable state of the U.S.-listed spot crypto exchange-traded funds! In the waning months of 2025, these once-celebrated financial instruments plunged into their most grievous abyss yet. Investors, like rats fleeing a sinking ship, withdrew a staggering $4.57 billion over November and December. Bitcoin, that erstwhile darling of the digital realm, saw its price plummet by 20%, leaving institutional interest in tatters.

The 11 spot ETFs collectively suffered net outflows of $1.09 billion in December, following a much more alarming $3.48 billion in November. This combined two-month redemption marks the largest since their debut in January 2024, as per data from the ever-reliable SoSoValue. The wave of outflows signals a significant decline in institutional appetite for Bitcoin, coinciding with its precipitous price drop.

But let us not forget Ether ETFs, which fared no better. Over November and December, investors withdrew a whopping $2 billion from these funds. Meanwhile, XRP ETFs and Solana’s SOL ETFs managed to attract over $1 billion and $500 million in inflows, respectively, providing a glimmer of hope amidst the gloom.

Yet, some experts remain optimistic. “ETF outflows and steady liquidations are weighing on sentiment, but the structure does not resemble panic. Instead, this appears to be a market in equilibrium, as weak hands are exiting into year-end and stronger balance sheets are absorbing supply,” remarked Vikram Subburaj, CEO of India-based Giottus exchange.

“The price is compressing as both sides wait for liquidity to return in January,” Subburaj added, perhaps with a twinkle in his eye.

So, while Bitcoin and Ether ETFs languish, other digital assets may yet rise. The financial world, ever fickle, continues its tumultuous dance, leaving investors to navigate the storm.

Read More

2026-01-02 10:52