Institutional appetite for crypto appears to be waning, as exchange-traded funds tied to Bitcoin and Ether continue to record sustained outflows, according to data from blockchain analytics platform Glassnode.
In a market update published Tuesday, Glassnode said the 30-day simple moving average (30D-SMA) of net flows into U.S. spot Bitcoin and Ether ETFs has remained negative since early November, signaling a prolonged period of reduced institutional participation.
The firm noted that this trend points to a broader liquidity contraction across the digital asset market.
“This persistence suggests a phase of muted participation and partial disengagement from institutional allocators,” Glassnode said, adding that the ETF flow data reinforces signs of declining liquidity already visible across spot and derivatives markets.
Spot Bitcoin and Ether prices have been under pressure since mid-October, a move that has coincided with the downturn in ETF flows.
Glassnode highlighted that inflows into crypto ETFs typically lag price movements in the underlying assets, meaning the continued negative trend in fund flows may reflect institutions reacting to earlier market weakness rather than driving it.
Bitcoin is currently trading near the $87,000 level, while Ether is hovering around $2,900, both well below their recent highs.Â
The sustained ETF outflows suggest that large allocators have not stepped in to buy the dip in a meaningful way, opting instead to reduce exposure or remain on the sidelines amid heightened volatility and uncertain near-term catalysts.
The data also underscores a shift in market structure, with liquidity thinning and price discovery increasingly driven by shorter-term positioning rather than long-term conviction. As institutional capital retreats, markets have become more sensitive to leverage-driven moves, resulting in sharper intraday swings and reduced depth.
Glassnode’s findings align with broader indicators pointing to a cooling phase for crypto markets, including lower derivatives open interest and reduced spot trading volumes. While institutional engagement played a key role in driving earlier rallies, particularly following the approval of U.S. spot Bitcoin ETFs, the current trend suggests a pause in that momentum.
Absent a clear macroeconomic or policy catalyst, analysts expect institutional investors to remain cautious in the near term, with ETF flows likely to stay subdued until market conditions stabilize and confidence returns.