Bitcoin and Ethereum ETFs Face Significant Outflows at End of 2025 Amid Market and Monetary Policy Developments
On December 31, 2025, Bitcoin spot ETFs experienced net outflows totaling $348 million, with Bitcoin closing at $87,496—down 6% from $93,381 at the end of 2024. Ethereum spot ETFs also recorded substantial outflows, amounting to $72.06 million across nine funds, while Solana and XRP ETFs posted net inflows of $2.29 million and $5.58 million respectively.
Coinciding with these outflows, the Federal Reserve's Standing Repo Facility saw a liquidity injection of $74.6 billion, marking the largest single-day use since the COVID-19 pandemic. Analysts interpreted this move as seasonal balance-sheet management rather than emergency quantitative easing, suggesting potential flexibility in monetary policy into 2026 and a reduced risk of near-term tightening.
Michael Townsend, a strategist at Charles Schwab, linked Bitcoin's rise above $90,000 during the year to increased regulatory clarity following the U.S. elections, estimating a 50% reduction in regulatory overhang. He anticipates gains for 2026 supported by quantitative easing and Federal Reserve bond purchases, although Schwab's crypto platform launch has been delayed to mid-2026.
Data from Glassnode showed that the 30-day simple moving averages for Bitcoin and Ethereum ETFs remained negative at year-end, reflecting weak retail demand. Bitcoin was positioned in Extreme Fear according to the Fear & Greed Index; analysts noted that such oversold conditions have historically been followed by rebounds within months.
CryptoQuant's outlook for 2026 outlines three scenarios: a probable twisted trading range of $80,000 to $140,000, a mid-case scenario near $50,000 under deleveraging conditions, and a low-probability scenario projecting $120,000 to $170,000 in the event of favorable easing policies and steady inflows.
Timot Lamarre from Unchained observed that Bitcoin underperformed in 2025 as capital shifted towards Bitcoin treasury strategies and AI investments. U.S. debt dynamics are likely to constrain significant action before the midterm elections, but Bitcoin could benefit from looser monetary conditions later in the year.
Additionally, Vanguard expanded its platform in late 2025 to allow trading of Bitcoin, Ethereum, XRP, and Solana ETFs. The Commodity Futures Trading Commission (CFTC) had approved spot cryptocurrency ETFs on registered futures exchanges in December 2024, further broadening access to these investment products.
