US-listed Bitcoin and Ethereum spot ETFs on Monday recorded their largest combined outflows in nearly two weeks, as institutional investors reduced their exposure during a fresh sell-off in US stocks.
Bitcoin spot ETFs recorded net redemptions of $357.6 million during the session, according to ETF flow data. The sale was spread across multiple products, including offerings from Fidelity, Ark Invest, and Bitwise. BlackRock’s Bitcoin ETF ended the day little changed.
Ethereum spot ETFs followed a similar pattern. Net outflows reached almost $225 million, marking the largest single-day decline since the beginning of the month.
ETF Flows Weaken Despite Stable Crypto Prices
The withdrawals occurred 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 the crypto markets themselves.
Spot ETFs have become the fastest way for large investors to adjust exposure to digital assets. When stock markets come under pressure, these products are often used to reduce risk quickly.
December Flows Still Negative for Bitcoin ETFs
So far this month, Bitcoin ETFs have seen more outflows than inflows. December refunds total about $705 million, compared to about $480 million in entries, leaving the segment with a net decline of about $225 million.
Ethereum ETFs have shown a more consistent pattern. Capital inflows and outflows have been almost balanced, leaving the total exposure practically stable during the month.
Pressure on equities and rates weighs on positioning
The latest ETF outflows coincided with renewed uncertainty around US interest rates and a pullback in technology stocks. US 10-year Treasury yields rose to around 4.2%, the highest level since early September, tightening financial conditions across markets.
As stock volatility increased, crypto ETFs sold off alongside other risk assets. Unlike previous sell-offs driven by forced liquidations, the recent withdrawals reflect a deliberate trimming of positions by institutions.
Demand for cryptocurrencies remains weak in the short term
Despite avoiding a sharp price drop, crypto markets have struggled to attract consistent new purchases. Commercial activity has remained scarce and price rebounds have been matched by sales.
ETF holdings remain substantial overall, but recent flows data show that institutional investors are prioritizing flexibility and liquidity as macroeconomic conditions remain unstable.
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