Crypto ETF Flows on Friday, December 12, 2025: Institutional Outflows Return
Crypto Exchange-Traded Products (ETPs) experienced a sharp reversal back into net outflows on Friday, December 12, 2025, following a brief respite earlier in the week. This renewed institutional caution occurred as Bitcoin struggled to hold the $93,000 level and the broader market digested the cautious tone from the Federal Reserve's recent rate cut, which failed to trigger a sustained "risk-on" rally. The return to outflows underscores the fragile sentiment among institutional investors amidst macro uncertainty and continued debate over the durability of the recent crypto rally, suggesting a focus on risk management over aggressive accumulation.
Bitcoin and Ether See Capital Exit
The overall U.S. crypto ETF complex saw a noticeable deceleration in demand, with both major assets registering significant net capital exits. Total Bitcoin ETPs (including spot and futures) registered a net outflow of approximately $154.2 million. This swing to negative flows follows a period of consolidation and comes after some substantial inflows earlier in the week, indicating that institutional funds are actively rotating and reducing exposure, rather than making sustained directional bets. The market sentiment remains cautious, with the failure to reclaim higher price levels spurring profit-taking or risk reduction. Similarly, Ether ETPs also recorded outflows, estimated at around $42.3 million. Although ETH had shown resilience, the move mirrored the broader risk-off environment impacting other large-cap crypto assets, suggesting a generalized reduction in leverage by large investors reacting to the persistent macro-economic headwinds.
XRP ETFs Remain a Bright Spot
In a significant divergence from the Bitcoin and Ethereum complex, XRP spot ETFs continued their sustained period of accumulation, maintaining their status as the preferred target for targeted institutional capital. XRP spot ETFs saw a notable net inflow of $20.17 million on Friday, marking one of the few positive flow points for the day. This inflow was primarily led by the Franklin XRP ETF (XRPZ) which absorbed $8.7 million, closely followed by the Bitwise XRP ETF (XRP) which recorded $7.85 million. This sustained positive trend reinforces the narrative that institutional interest in XRP is driven by its improving regulatory clarity and potential for use in payments, positioning it as a distinct asset class separate from the general macro volatility affecting Bitcoin and Ether. Total cumulative net inflows into XRP spot ETFs have now reached approximately $975 million since their launch, demonstrating a consistent, high-conviction accumulation phase. The flow data on Friday highlighted a market characterized by institutional deleveraging in core assets like BTC and ETH, while highly specific, narrative-driven products like XRP continue to attract targeted capital deployment.