Why Did Crypto Funds See $952M in Outflows as Bitcoin Slipped and Altcoins Drew Fresh Inflows?

[Ben Graham]

Crypto investment products saw a clear shift in fund flows last week, with net outflows reaching about $952M. 

The move ended nearly four weeks of steady inflows into digital asset investment vehicles and marked the first weekly pullback over that period.

Data from CoinShares shows the decline was mainly driven by renewed selling from large holders. At the same time, regulatory uncertainty weighed on sentiment across the market. 

Delays around the proposed Clarity Act added to that pressure, raising fresh doubts about the near-term regulatory path for the crypto sector.

Still, the broader picture remains mixed rather than outright bearish. Ethereum-linked exchange-traded products continued to attract strong interest on a year-to-date basis, even as weekly flows turned negative across the wider market.

Digital asset investment products saw US$952m in outflows, driven by delays to the US Clarity Act, prolonging regulatory uncertainty, and concerns over whale selling. Ethereum led outflows at US$555m, while Bitcoin saw US$460m. Solana and XRP saw inflows of US$48.5m and US$62.9m…

— Wu Blockchain (@WuBlockchain) December 22, 2025

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Why Are Ethereum ETP Inflows Holding Up While Bitcoin Funds See Outflows?

ETH ETPs have taken in roughly $12.7Bn so far in 2025. That figure is more than double the $5.3Bn recorded over the same period last year.

The gap points to sustained longer-term demand for Ethereum exposure, despite the recent pause in overall crypto fund inflows.

(Source: Coinshares)

Bitcoin investment products slipped into negative territory last week, with withdrawals reaching about $460M. Bitcoin still attracts the largest share of capital among crypto funds, but the flow has slowed compared to last year.

So far in 2025, Bitcoin-linked funds have taken in around $27.2Bn. 

That figure sits well below the $41.6Bn recorded over the same period in 2024, pointing to more restrained positioning by investors.

The pullback came as volatility picked up across the wider crypto market. 

Between December 15 and December 19, total market capitalization dropped by more than $210Bn as prices across major tokens moved lower. 

Since then, conditions have steadied. At the time of writing, total market cap has recovered to roughly $3.03 trillion.

Looking ahead, CoinShares said total inflows into crypto exchange-traded products this year may struggle to top last year’s levels. 

Assets under management currently stand at about $46.7Bn, still below the $48.7Bn peak seen in 2024. 

That gap suggests investors remain cautious as the year draws to a close.

Even so, not all parts of the market saw outflows. While Bitcoin and Ethereum funds showed continued softness, several major altcoins attracted fresh capital. 

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Why Are Investors Rotating Into Solana and XRP Despite Bitcoin and Ethereum Weakness?

Data shows Solana recorded weekly inflows of around $48.5M, while XRP pulled in roughly $62.9M. 

The figures point to selective risk-taking, with some investors looking beyond the two largest cryptocurrencies for opportunities.

Renewed inflows have raised hopes among traders that a seasonal bounce in major altcoins could take shape as Christmas gets closer.

Year-end trading has often brought more speculative bets in the past. Still, there is no clear agreement on whether the market has enough strength right now to support a lasting move higher.

Crypto analyst CyrilXBT said Ethereum’s performance against Bitcoin remains stuck in a range. In his view, recent price moves look more like short-term corrections than the start of a new trend. 

$ETH/BTC

ETH is still range-bound vs BTC. Not broken, but not winning either.

It needs a clean reclaim above the range highs (roughly mid-0.03s) to flip momentum back in ETH’s favor.

As long as ETH/BTC can’t break up, rallies in ETH are likely “bounce vibes,” not “ETH leads… pic.twitter.com/GFxX8JT2S7

— CyrilXBT (@cyrilXBT) December 22, 2025

He added that Ethereum would need to show clear and sustained strength against Bitcoin before a wider altcoin rally can really develop.

In a separate note, analyst Dami pointed out that the total crypto market value, excluding Bitcoin and Ethereum, is hovering near its 100-day exponential moving average.

Altcoins have bounced off this support every time for the last 3 years

do you know what that means? pic.twitter.com/tFJetX0kXo

— Dami-Defi (@DamiDefi) December 21, 2025

This level has acted as support several times over the past three years. And because of that history, traders are watching it closely. 

A hold could support further upside. A break lower could shift the tone back to caution.

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