U.S.-Listed Bitcoin and Ether ETFs See Nearly $1 Billion Outflows Amid Crypto Selloff
U.S.-listed spot bitcoin and ether ETFs experienced one of their largest combined outflow days of 2026 on Thursday, as plunging crypto prices, heightened volatility, and macroeconomic uncertainty drove investors to reduce exposure.
According to SoSoValue, bitcoin ETFs saw $817.9 million withdrawn on Jan. 29, marking the biggest single-day outflow since Nov. 20. Ether ETFs also faced selling pressure, losing $155.6 million in the same session.
The withdrawals coincided with a sharp drop in crypto markets. Bitcoin fell below $85,000 before sliding toward $81,000 during U.S. trading hours, stabilizing near $83,000 in Asian markets Friday morning. Ether declined more than 7% on the day.
Among bitcoin ETFs, BlackRock’s IBIT led redemptions with $317.8 million withdrawn, followed by Fidelity’s FBTC at $168 million and Grayscale’s GBTC at $119.4 million. Smaller funds, including Bitwise, Ark 21Shares, and VanEck, also saw notable outflows.
Ether ETFs showed a similar trend. BlackRock’s ETHA lost $54.9 million, Fidelity’s FETH saw $59.2 million exit, and Grayscale’s ether products continued to bleed assets. Total ether ETF holdings fell to $16.75 billion, down from more than $18 billion earlier this month.
The broad-based selling suggests institutional investors were trimming overall crypto exposure rather than rotating between bitcoin and ether. Earlier in January, inflows into ether funds often offset weakness in bitcoin products.
Analysts point to rising volatility across risk assets and uncertainty over U.S. economic policy as key drivers. Speculation around Federal Reserve leadership, with Kevin Warsh viewed as bearish for bitcoin, added to investor caution.
“Rising implied volatility, weakness in equities, and uncertainty about future Federal Reserve actions weighed on sentiment,” the report noted. “Leveraged positions in crypto markets were aggressively unwound, adding pressure to spot prices.”
ETF flows are currently tracking price movements rather than driving them. Analysts expect demand for bitcoin and ether ETFs to remain fragile as long as prices are under pressure, with investors waiting for volatility to subside before re-entering the market.
“Bitcoin crashed to $81k due to a risk-off wave: hawkish Fed holding rates with no cuts soon, heavy spot BTC ETF outflows ($1B+ recently), geopolitical tensions (US-Europe trade spats, Middle East), and a brief gold/silver dip,” said Andri Fauzan Adziima, Research Lead at Bitrue, in a Telegram message.
“This triggered massive leveraged liquidations after breaking key support (~$85k 100-week SMA), creating a self-reinforcing sell-off in thin liquidity. It’s a leverage shakeout amid macro pressure, not the start of a bear market, with rebound potential if supports hold,” Adziima added.
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