Sustained redemptions from U.S.-listed spot crypto ETFs point to a sharp retreat in institutional engagement, reinforcing signs that the digital asset market remains under significant strain.

Spot funds tied to bitcoin and ether have posted four consecutive months of net outflows — the longest such stretch since their launch in January 2024. Figures compiled by SoSoValue show that investors have withdrawn $6.39 billion from bitcoin ETFs during that period.

Ether-linked products have mirrored the trend, with $2.76 billion exiting funds over the same four-month span.

The persistent capital exodus has coincided with steep price declines in the underlying tokens. Bitcoin, which topped $126,000 in early October, has since fallen to around $67,000 — nearly a 50% drop. Ethereum has performed even worse, sliding more than 60% from highs above $4,950 reached in August last year.

After debuting in early 2024, spot ETFs became the clearest gauge of institutional participation in crypto markets. Strong inflows throughout the year — particularly following the U.S. election victory of Donald Trump — helped power a robust rally in both bitcoin and ether.

That optimism faded after a sharp early October sell-off, which traders partly linked to pricing dislocations on offshore exchange Binance. While there have been intermittent inflow days more recently, analysts say a sustained return of capital will be essential to underpin any meaningful recovery in digital asset prices.