Bitcoin, Ethereum ETFs Suffer Massive Outflows, Nearly $1B Withdrawn

TLDR

• U.S.-listed bitcoin and Ethereum ETFs saw nearly $1 billion in redemptions on January 29, 2026.
• Bitcoin ETFs experienced the largest outflows, with $817.9 million pulled from the market.
• Ethereum ETFs also suffered significant losses, with $155.6 million in outflows.
• The redemptions came as bitcoin prices dropped below $85,000 and Ethereum fell by over 7%.
• BlackRock’s IBIT and Fidelity’s FBTC were among the hardest-hit bitcoin ETFs.

U.S.-listed spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced heavy redemptions on January 29, 2026. Investors pulled nearly $1 billion in a single session, reflecting a sharp decline in crypto prices. Bitcoin and ether saw significant losses, and risk appetite dwindled as market conditions worsened.

Bitcoin ETFs Experience Large Redemptions

Bitcoin ETFs took the hardest hit, with investors withdrawing $817.9 million, marking the largest daily outflow since November 2020. BlackRock’s IBIT, one of the most popular bitcoin ETFs, saw a massive outflow of $317.8 million. Fidelity’s FBTC lost $168 million, while Grayscale’s GBTC shed $119.4 million, indicating widespread selling across various bitcoin products.

This significant pullback coincided with a sharp drop in Bitcoin prices. The cryptocurrency fell below $85,000 and continued to slide toward $81,000 in U.S. trading hours. It briefly recovered to around $83,000 in the Asian market, but the price remained under pressure as sentiment weakened.

Ethereum ETFs Also Suffer Outflows

Ethereum ETFs experienced similar struggles, losing a combined $155.6 million on the same day. BlackRock’s ETHA saw a $54.9 million exit, while Fidelity’s FETH lost $59.2 million. Grayscale’s ETH products also saw sustained outflows, bringing the total assets in Ethereum ETFs down to $16.75 billion from over $18 billion earlier in the month.

This massive shift in Ethereum ETF flows highlights broader market trends affecting the crypto sector. Unlike previous months, when ether inflows often offset bitcoin ETF losses, January 29 marked a shift toward a general reduction in crypto exposure. Investors seemed to pull back from both bitcoin and ether positions, indicating broader risk aversion in the market.

The synchronized selling of both assets suggests a shift in investor strategy, with many choosing to reduce their overall crypto exposure. Analysts noted that such moves reflect a growing uncertainty, particularly in the face of rising market volatility and speculation surrounding U.S. economic policy.

Market Conditions Add Pressure to Crypto ETFs

The large outflows occurred amid a broader risk-off environment. Rising volatility in equities and growing concerns about U.S. economic policy weighed heavily on sentiment. Additionally, speculation around potential changes in Federal Reserve leadership added to market uncertainty, especially with some analysts forecasting a hawkish stance from potential candidates like Kevin Warsh.

Leverage unwinding in crypto markets added further pressure, exacerbating the price declines. Analysts pointed out that many leveraged positions were liquidated after bitcoin dropped below key technical levels, fueling a self-reinforcing sell-off. This sharp market correction raised concerns but was seen by some as a temporary reaction rather than the start of a bear market.

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