Ethereum ETFs Suffer $564M December Outflows, TVL Falls to $17.86B
Spot Ethereum ETFs in the U.S. recorded heavy outflows in December 2025, with investors withdrawing about $564 million according to SoSoValue. Total USD-denominated assets under management in Ether ETFs fell to $17.86 billion, roughly 37.5% below August 2025 peaks. December is on track to be the second worst month for Ethereum ETFs by net outflows, exceeding prior monthly outflows of $460 million (July 2024) and $408 million (March 2025). November 2025 remains the most severe month with net outflows over $1.42 billion. For context, ETH trades near $2,926 (down ~41% from its all-time high and ~13% YTD). Spot Bitcoin ETFs also experienced significant December outflows (~$804 million), making it the third worst month for spot BTC ETFs; combined with November, spot BTC ETF outflows exceeded $4 billion. Major outflows among Bitcoin products were seen in Grayscale’s GBTC and Fidelity’s FBTC. Key figures: $564M outflow (ETH ETFs, Dec), $17.86B total ETH ETF AUM, 37.5% drop from August highs, ETH price ~$2,926, BTC spot ETF outflows ~$804M (Dec).
Bearish
Large, sustained outflows from spot Ethereum ETFs signal weakening demand from institutional and retail investors for ETF-wrapped ETH exposure. A $564M withdrawal in December — on top of a brutal November — reduces ETF TVL to $17.86B (down 37.5% from August highs), which tightens liquidity and can increase selling pressure on ETH in the near term. Comparable past episodes (e.g., heavy ETF outflows in November) corresponded with notable ETH price declines from ~$4,953 to the $2,800–$3,300 range. Concurrent large outflows from spot Bitcoin ETFs (~$804M in December, >$4B across two months) point to broader risk-off behavior across exchange-traded crypto products, not an isolated ETH phenomenon. For traders, expect elevated volatility and potential downward price pressure short-term as ETF managers sell to meet redemptions or market makers adjust positions. Longer term, sustained outflows could signal a reallocation away from ETF products until sentiment or macro conditions improve; however, if macro drivers (risk appetite, inflows into spot ETFs) reverse, these products could attract renewed capital and support a recovery. Key trading implications: tighten risk management, consider short-term bearish setups or hedges, monitor ETF flows, AUM levels, and on-chain indicators for signs of stabilized demand.