US Spot Bitcoin ETFs Wipe Out 2025 Gains Amid $48B Drop

US spot Bitcoin ETFs have erased nearly all of their gains from 2025, with assets under management (AUM) dropping to $120.68 billion as of December 4, down $48.86 billion—a 28.8% decline—from the peak of $169.54 billion reached on October 6.

This leaves AUM almost unchanged year-over-year, just $30 million below the $120.71 billion mark from December 2024.

Flows remain positive as price drives losses

Despite the sharp drop in AUM, ETF net creations for 2025 totaled $22.32 billion through December 4.

The majority of the decline was not due to redemptions, but rather the result of bitcoin’s late-year price retracement.

Net outflows since October 6 amounted to just $2.49 billion, while the bulk of the AUM reduction was attributed to negative price performance and unrealized profit and loss.

For those tracking institutional activity, the US spot Bitcoin ETF flows chart highlights the persistence of structural demand, with cumulative net inflows since launch standing at $57.56 billion.

However, the last 30 days showed net outflows of $4.31 billion, reflecting the cooling sentiment in the final quarter of the year.

Quarterly creation patterns shift

ETF creations were strongest in the second and third quarters, with $12.80 billion and $8.79 billion added respectively.

The fourth quarter, however, turned slightly negative with $0.20 billion in net redemptions, coinciding with the broader market downturn.

Price action, not redemptions, explains the reset

The gap between actual AUM and a flow-only scenario demonstrates that the year-end slump was driven almost entirely by bitcoin price history rather than mass investor exits. Positive flows indicate ongoing demand, while the October-December retracement accounted for most of the asset wipeout.