U.S.-listed spot bitcoin and ether exchange-traded funds experienced one of their worst outflow days in 2026, with nearly $1 billion withdrawn in a single session on January 29—following heavy weekly outflows totaling nearly $2 billion the prior week ending January 23. The heavy redemptions coincided with sharp declines in cryptocurrency prices amid rising volatility and macroeconomic pressures. Investors pulled back as bitcoin fell below $85,000 and ether dropped more than 7%.
On January 29, 2026, U.S. spot bitcoin exchange-traded funds (ETFs) recorded outflows of $817.9 million, marking the largest daily withdrawal since November 20, according to data from SoSoValue. Ether ETFs followed suit, losing $155.6 million, bringing the combined total to nearly $1 billion. This synchronized selling across both asset classes indicated that institutional investors were broadly reducing their cryptocurrency exposure rather than shifting between bitcoin and ether. The outflows continued a trend from the prior week ending January 23, when Bitcoin ETFs saw $1.33 billion in net outflows and Ethereum ETFs $611 million.
The outflows aligned with a turbulent day in crypto markets. Bitcoin prices tumbled below $85,000 during U.S. trading hours, briefly approaching $81,000 before recovering to around $83,000 in early Asian sessions on January 30. Ether declined by over 7%, contributing to the pressure on ETF assets. Total assets in ether ETFs shrank to $16.75 billion, down from more than $18 billion earlier in the month.
Major funds were hit hardest. BlackRock's iShares Bitcoin Trust (IBIT) saw $317.8 million in redemptions, while Fidelity's Wise Origin Bitcoin Fund (FBTC) lost $168 million and Grayscale's Bitcoin Trust (GBTC) shed $119.4 million. On the ether side, BlackRock's iShares Ethereum Trust (ETHA) recorded $54.9 million in outflows, and Fidelity's Ethereum Fund (FETH) lost $59.2 million. Smaller providers like Bitwise, Ark 21Shares, and VanEck also faced significant withdrawals.
Analysts attributed the selloff to a combination of factors, including heightened volatility in risk assets, uncertainty over U.S. economic policy, and expectations of a hawkish Federal Reserve stance under potential leadership like Kevin Warsh. Aggressive unwinding of leveraged positions in crypto markets exacerbated the price drops.
"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. He added, "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."
For the time being, ETF flows are mirroring price movements rather than driving them. Experts anticipate continued fragility in demand until market volatility subsides.
