Bitcoin ETFs reverse early gains with heavy weekly outflows

Bitcoin ETFs reverse early gains with heavy weekly outflows
Spot Bitcoin ETFs reverse early gains amid macro-driven risk reduction

​Spot Bitcoin exchange-traded funds opened 2026 on a weak footing, recording a combined $681 million in net outflows during the first full trading week of the year. 

Data from SoSoValue shows four consecutive days of redemptions between Tuesday and Friday, overwhelming inflows seen at the very start of January. 

The heaviest selling pressure came mid-week, with $486 million exiting on Wednesday alone, followed by $398.9 million on Thursday and $249.9 million on Friday. This pullback erased much of the optimism sparked by strong inflows on Jan. 2 and Jan. 5, when ETFs attracted $471.1 million and $697.2 million, respectively. The pattern suggests fast-moving institutional repositioning rather than a structural exit from the asset class. Still, the scale of the outflows highlights how fragile sentiment remains after late-2025 volatility.

Ether ETFs also see pressure as risk appetite fades

Spot Ether ETFs mirrored Bitcoin’s trend, ending the week with net outflows of roughly $68.6 million and total assets of about $18.7 billion. While the drawdown was smaller in absolute terms, it reinforced the broader cooling in crypto fund demand. Vincent Liu, chief investment officer at Kronos Research, attributed the pullback to growing macroeconomic uncertainty. 

According to Liu, fading expectations for near-term interest rate cuts and rising geopolitical risks have pushed investors into a more defensive posture. He said crypto is being treated like other risk assets, with exposure trimmed as traders wait for clearer signals. Until inflation data and central-bank guidance point toward easing, ETF flows are likely to remain choppy.

Wall Street filings contrast short-term outflows

Despite near-term selling pressure, major financial institutions continue to deepen their crypto commitments. Morgan Stanley has filed with the US Securities and Exchange Commission to launch two spot crypto ETFs, one tracking Bitcoin and another tied to Solana. The filings underscore longer-term institutional confidence, even as short-term positioning turns cautious. 

Analysts note that ETF outflows often reflect tactical rebalancing rather than a reversal of adoption trends. With additional products moving through the regulatory pipeline, crypto exposure remains embedded in broader portfolio strategies. For now, however, markets appear focused on macro clarity before re-engaging aggressively.

Recently we wrote that Bitcoin is trading near $90,000, where repeated ETF outflows have slowed upward momentum

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