Major Exchange-Traded Funds (ETFs) of Bitcoin and Ethereum have experienced sustained outflows since November. While some have linked these divestments to the bearish price action, Glassnode argues that they could indicate partial institutional disengagement from the crypto market.
In a recent X (formerly Twitter) post, Glassnode highlighted the market impact of these sizeable withdrawals. It tweeted:
“Since early November, the 30D-SMA of net flows into both Bitcoin and Ethereum ETFs has turned negative and remained so.
This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market.“
Here is the graph of the 30-day SMA of net flows of the ETH ETFs:
Here is the graph of the 30-day SMA of Bitcoin ETF flows:
Image Source: GlassnodeThese two graphs show that the last 7-8 weeks haven’t been kind to crypto tickers in conventional stock markets, which recorded $952 million in outflows. Ethereum and Bitcoin both witnessed major outflows, and the trend hasn’t been able to reverse itself ever since, even though the intensity of these outflows has dropped during the last couple of weeks or so.
Are Institutions Disengaging from Crypto?
The answer to this question is not simple, as we are currently in a market overrun by bearish forces. As a result, negative sentiment has overwhelmed the decision-making of major players, especially new entrants like ETF investors.
However, they can take heart from the fact that a deeper outflow pattern was observed in March-April of this year, followed by a major inflow boom that put BTC back on track for months to come. Much of the second and third quarters saw positive flows, and the spot price index responded accordingly.
However, the situation has changed dramatically in the last two months of 2025 as commodities like Gold, Silver, and Copper are at record highs, and the stock market is also reaping in major returns, all the while BTC has remained on the defensive throughout this time. Institutional players are still exposed to the crypto market through ETFs, but are likely to continue pulling out if these bearish conditions persist.
The sudden influx of liquidity has also failed to improve the situation significantly. This is why the start of the 2026 calendar year is expected to come with a major opportunity for crypto bulls to make a swift comeback.
Source: https://zycrypto.com/bitcoin-and-ethereum-etfs-see-sustained-outflows-since-november-as-glassnode-warns-of-institutional-disengagement/
