Bitcoin ETFs See $142M Outflows as Capital Rotates Into Ethereum and Altcoins

U.S. spot Bitcoin ETFs recorded $142 million in net outflows on December 22 (ET), according to data from SoSoValue. This marks the third consecutive day of withdrawals, reflecting cautious sentiment as Bitcoin trades sideways near the $88,000 level. Despite broader weakness across Bitcoin, BlackRock’s IBIT bucked the trend by posting the largest single-day inflow among Bitcoin funds at $6 million. The move reinforces IBIT’s position as the dominant institutional vehicle within the Bitcoin landscape.

Ethereum ETFs Attract Strong Demand

While Bitcoin funds saw capital exit, spot Ethereum ETF recorded total net inflows of $84.59 million, signaling a clear shift in institutional preference. Investors appear increasingly confident in Ethereum’s long-term utility, particularly following ETF approvals and growing on-chain activity. Capital rotation extended beyond Ethereum, with Solana spot ETF attracting $7.47 million and XRP spot ETFs recording $43.89 million in net inflows. These inflows highlight expanding institutional exposure to alternative Layer 1 and payments-focused blockchain assets.

ETF Approvals Reshape Institutional Strategy

The inflows into Ethereum, Solana, and XRP ETF are closely tied to their SEC approvals earlier in 2025, which opened regulated access for traditional investors. As a result, institutions are diversifying beyond Bitcoin rather than exiting crypto entirely. Bitcoin’s consolidation near $88,300 appears to be encouraging profit rotation instead of aggressive risk-off behavior. With total Bitcoin assets still standing near $115 billion, the outflows suggest rebalancing rather than loss of conviction.

Market Implications Going Forward

This divergence between Bitcoin and altcoin ETF flows points to a more nuanced market phase. Institutions are no longer treating crypto as a single trade but are actively allocating based on network fundamentals, growth narratives, and risk-adjusted returns. Sustained Ethereum ETF inflows, Bitcoin price stability, and continued diversification into altcoin will be key signals to monitor. If this rotation persists, it could mark a structural shift in how institutional capital approaches the crypto market in 2026 and beyond.