Ethereum ETFs See Significant Outflows in December
Ethereum (ETH) and its associated Exchange-Traded Funds (ETFs) have faced a challenging December as investors experienced a prolonged outflow trend. Between December 11 and 25, Ethereum ETFs recorded a striking $853.9 million in outflows, according to Farside Investors.
Although slight positive inflows of $84.6 million were observed on December 22, the largest ETFs, including BlackRock’s ETHA, surprisingly led the decline, indicating a pullback even among heavy institutional players as the holiday season approached.
Pressure on Ethereum Prices
At press time, Ethereum was trading near $2,964, but the persistent ETF sell-off has created tension in the market. The key level to monitor is $2,500, a strong support point that might be tested if this trend continues. Interestingly, retail traders or large on-chain buyers appear to be absorbing some of the selling pressure, as ETH has managed to hold above $2,900 despite outflows.
Beyond Ethereum, Bitcoin ETFs also suffered even larger withdrawals, totaling $1.538 billion over the same period. December 12 and 17 saw brief inflows for Bitcoin ETFs, with respective amounts of $49.1 million and $457.3 million, but overall investor sentiment remains bearish.
Potential Signs of a Bullish Reversal
At press time, Ethereum’s Relative Strength Index (RSI) sat below 50, indicating ongoing bearish momentum. However, the RSI trending upward could point to the early signs of a bullish divergence. A trend reversal in the coming weeks might occur, making it an essential metric for traders to watch.
XRP Outshines Ethereum and Bitcoin
While Ethereum and Bitcoin struggle to maintain confidence among institutional investors, Ripple’s (XRP) ETFs have demonstrated a consistent inflow trend. By December’s end, XRP’s net ETF assets climbed above $1.16 billion, showcasing a firm belief in its regulatory standing and long-term potential. This performance makes XRP an attractive option for those diversifying their crypto portfolios.
Investing with Confidence
Navigating today’s volatile crypto market requires careful planning and research. For conscious crypto investments, consider using tools like Ledger Nano X for secure digital asset storage, offering peace of mind while trading or holding long-term assets.
As we approach 2026, Ethereum and Bitcoin face challenges in attracting large-scale investor trust. However, opportunities abound for those keen on smaller altcoins or understanding new ETF trends in the crypto space.
