Interesting phenomena have emerged in the ETF trading volume of the crypto market over the past two months. According to SoSoValue data, from November to December, the US Bitcoin spot ETF experienced the most severe fund outflows in history—net outflows reaching as high as $4.57 billion. This figure broke the previous record of $4.32 billion set in February and March, making it the most disastrous two-month period on record. During the same period, Bitcoin prices also declined by about 20%, with institutional investors' enthusiasm noticeably cooling.

But the story is not over yet. Ethereum spot ETFs also did not escape this downturn, with net outflows exceeding $2 billion during the same period. The ETF products for the two main cryptocurrencies experienced simultaneous heavy outflows, directly reflecting how intense the selling pressure in the crypto market has been at the end of the year.

Interestingly, industry opinions vary. Many analysts believe this is not panic selling, but rather a structural rebalancing in the market. Simply put: smaller investors are clearing their positions at the end of the year, while truly capable funds are accumulating at lower prices. Both sides are waiting for liquidity to rebound in January 2026, which will then push prices upward again. Currently, the market is in a narrow-range consolidation phase.

A key observation is that funds have not completely fled the crypto market; instead, there has been a clear internal rotation. While Bitcoin and Ethereum ETFs are bleeding, XRP and Solana spot ETFs are gaining: in November, net inflows exceeded $1 billion, and in December, net inflows were about $500 million. This indicates that the market is shifting from traditional blue-chip assets to emerging assets with higher growth narratives.

Therefore, the record-breaking outflows of BTC and ETH spot ETFs indeed reflect a phased decline in institutional interest and market sentiment fragility. But this is not the end; it marks a critical period of industry segmentation and consolidation—weak hands are being cleared out, while long-term capital is exploring new opportunities. As for how things will develop in early 2026, we will need to continue observing.