Capital flows in crypto ETFs are decreasing | While Bitcoin and Ethereum show weekly volatility, strong demand emerges from tokenized money market products

Significant Outflows in US Spot ETFs

The week just concluded highlighted a capital withdrawal trend from the leading bitcoin ETFs in the United States, with total net outflows of $497 million recorded over four consecutive sessions. Despite this selling pressure, total net assets remain robust at $114.87 billion.

The inflow dynamics were mixed: while six funds experienced net withdrawals, three products attracted significant capital. BITB raised $115 million, followed by IBIT with $106 million and ARKB with $100 million, demonstrating that investors continue to selectively choose among available managers. Data comes from Farside Investors.

The ethereum market experienced an even more pronounced pressure, with total net outflows of $643 million despite three days of positive inflows. The net assets managed by ethereum spot ETFs reached $18.21 billion. Among the main movements, BlackRock’s ETF recorded a significant net inflow of $558 million, while six alternative funds experienced widespread withdrawals.

Hong Kong: New Developments in Eastern Markets

On the Asian front, bitcoin spot ETFs in Hong Kong showed net outflows of 8.98 bitcoins, with net assets of $336 million. The dynamics among issuers showed volatility: Harvest Bitcoin’s position fell to 291.25 bitcoins, while ChinaAMC’s share rose to 2,410 bitcoins. In the ethereum segment, Hong Kong ETFs did not record significant capital movements, maintaining net assets of $95.61 million.

Derivatives Market Activity

Activity in bitcoin spot ETF options showed a contraction in volume. As of December 19, the total notional value of operations was $987 million, with a long/short ratio of 1.37. Open positions were more robust, reaching $32.51 billion as of December 18, with a long/short ratio of 1.85.

Although derivatives trading has slowed in the short term, operators maintain a generally bullish outlook. Implied volatility is set at 47.28%, according to SoSoValue data.

New Products Undergoing Approval and Regulatory Expansion

The crypto ETF sector continues to see significant innovations. VanEck has filed a modified application with the Securities and Exchange Commission for a spot ETF on Avalanche (AVAX), intended for the ticker VAVX. Simultaneously, Bitwise Asset Management has officially initiated the registration process for an ETF on Sui, submitting Form S-1 with protocol number 0001213900-25-123107. The trust is registered in Delaware with operational headquarters in San Francisco.

Canary Capital has also filed amended documentation with the SEC for an ETF with staking on Injective (INJ), with a planned listing on Cboe Exchange. U.S. Bancorp Fund Services will serve as transfer agent, while BitGo Trust Company will act as custodian.

Growing Regional Markets and Tokenized Products

Hong Kong has seen a notable acceleration in tokenized money market products. The local Securities and Futures Commission reported that the total market value of virtual asset spot ETFs in Q3 reached $920 million, a 217% increase since product launch.

The tokenized money market fund segment is particularly dynamic, accumulating $5.387 billion HKD (about $692 million) in assets under management, representing a 391% increase from the previous quarter. These instruments serve as an important bridge between traditional finance and digital assets, with regulators confirming tax incentives to encourage secondary trading.

The SFC has authorized 11 virtual asset trading platforms, with another 8 applications still under review.

NYSE Strengthens Role as a Global Crypto Hub

The New York Stock Exchange has solidified its position in 2025 by listing 25 digital asset ETFs, becoming the preferred platform for this segment in the United States. Among the launched products are the Grayscale CoinDesk Crypto 5 ETF (GDLC), the Bitwise Solana Staking ETF (BSOL), and the Franklin XRP ETF (XRPZ).

This year, NYSE also listed Circle Internet Group (CRCL), Bullish (BLSH), and Twenty One Capital (XXI), as well as the first fully crypto-dedicated closed-end fund, the C1 Fund, which chose the prestigious New York exchange.

Bitwise recently filed amended documentation for its Hyperliquid ETF, with ticker YHYP and a fee of 0.67%, indicating an imminent listing.

Outlook 2026: New Approvals and Consolidation Risks

Industry experts paint an optimistic picture for the coming year. Matt Hougan, Chief Investment Officer of Bitwise, stated that the trajectory of crypto ETFs is “extremely promising,” predicting 2026 will be a record year for capital inflows after recent negative factors (cyclical four-year expectations and market volatility) subside.

However, analysts also issue warnings. The SEC has accelerated approval times to 75 days for new products, hinting at the launch of over 100 crypto ETFs in 2026. This boom, however, is expected to lead to a wave of consolidation between late 2026 and early 2027.

The main risk identified concerns custody concentration: Coinbase holds approximately 85% of the total assets of bitcoin ETFs globally, creating a single point of systemic vulnerability. Authorized participants also depend on a few platforms for price discovery and asset lending.

Homogeneous products with high fees and assets under $50 million will be more vulnerable to market pressures. Conversely, ETFs on bitcoin, ethereum, Solana, and other major cryptocurrencies will further consolidate their dominant positions.

A notable point: Hougan estimates that the amount of bitcoin that new $15 billion ETFs are destined to acquire could surpass the total annual supply from mining, suggesting potential upward pressure on prices in the coming months.