While many investors hope for a “Santa Claus Rally,” Ethereum ETFs have seen the opposite this December.
Since 11 December, they’ve been stuck in a steady outflow cycle, losing $853.9 million in two weeks as per Farside Investors. Only on 22 December did ETH ETFs see positive inflows of $84.6 million.
Here, the biggest surprise was BlackRock’s ETHA since it unexpectedly led the outflows – A sign that even the strongest institutional players pulled back as the holidays approached.
Ethereum’s price action
Even though Ethereum [ETH] and Bitcoin [BTC] prices rose slightly over the last 24 hours, institutions appear to be de-risking or locking in tax losses before the year ends.
Ethereum was trading at around $2,964 at press time, but the pressure from huge ETF outflows may be keeping traders nervous.
The key level to watch is $2,500.
If outflows continue at the same pace, this important support level could be tested.
Interestingly, despite the outflows, ETH was holding on to $2,900 on the price charts – A sign that retail traders or large on-chain buyers may be absorbing the selling from ETFs.
Was Bitcoin an exception?
On the other hand, Bitcoin ETFs have also faced a tough month, on an even bigger scale than Ethereum.
Since 11 December, they have recorded $1.538 billion in outflows, showing a clear and sustained pullback from institutional investors.
Only two days broke this trend.
12 December saw a modest $49.1 million in inflows. 17 December too saw inflows of over $457.3 million.
Despite these brief moments of strength, however, the overall picture suggested that major players have been steadily withdrawing capital throughout December.
In fact, thanks to this selling spree and other multiple factors, Bitcoin was down and trading at $88,514.79 at press time. .
A technical PoV
Despite their insignificant price gains, the Relative Strength Index (RSI) for both BTC and ETH was still below 50 at press time.
This suggested that bearish momentum is still strong in the short term.
However, both the RSIs moving north could be early signs of a bullish divergence. To put it simply, a potential trend reversal might be incoming.
What to expect in 2026?
As we approach 2026, Bitcoin and Ethereum are each following their own distinct paths.
On the contrary, Ripple [XRP] has stood out as the most consistent performer in the ETF space, recording daily inflows and pushing net assets above $1.16 billion.
The scale of this steady demand is evidence of strong institutional confidence in XRP’s regulatory position and long-term outlook. As it stands, both ETH and BTC seem unable to reach that level of confidence.
Final Thoughts
- ETH’s ability to hold above $2,900, despite $853M in outflows, suggests strong retail or on-chain whale absorption.
- Bitcoin’s $1.5 billion ETF exodus has been even more alarming – A sign that institutional pressure may be industry-wide.
