Bitcoin ETFs Record $1.33B Weekly Outflows as Risk Appetite Fades
Why Did Bitcoin ETFs Record Their Worst Week Since February 2025?
U.S. spot bitcoin exchange-traded funds posted $1.33 billion in net outflows during the week ended Jan. 23, marking their largest weekly redemption since February 2025, according to data from SoSoValue. The selling took place during a shortened four-day trading week, with markets closed on Monday for the Martin Luther King Jr. Day holiday.
The scale of the withdrawals stood in sharp contrast to the previous week, when spot bitcoin ETFs attracted $1.42 billion in net inflows. This reversal highlights a rapid change in investor behavior, with capital moving out of crypto-linked products despite bitcoin prices holding above key technical levels for much of the period.
Wednesday accounted for the bulk of the damage, with $709 million leaving bitcoin ETFs in a single session. Tuesday followed with $483 million in outflows. Redemptions slowed later in the week, with $32 million exiting on Thursday and $104 million on Friday.
Investor Takeaway
How Does This Compare With Previous ETF Drawdowns?
The latest outflow represents the heaviest weekly redemption since late February 2025, when bitcoin ETFs lost $2.61 billion during a sharp market pullback. That earlier episode coincided with bitcoin falling from above $109,000 to below $80,000 and included a record single-day outflow of $1.14 billion on Feb. 25.
By contrast, bitcoin prices during the latest week did not experience a comparable collapse, suggesting that ETF flows may be reacting more to broader portfolio allocation decisions than to immediate price stress.
BlackRock’s IBIT, the largest spot bitcoin ETF by assets, recorded outflows on all four trading days. According to SoSoValue, the heaviest redemptions occurred on Tuesday and Wednesday. IBIT currently holds about $69.75 billion in net assets, representing roughly 3.9% of bitcoin’s circulating supply.
Despite the weak week, cumulative net inflows into U.S. spot bitcoin ETFs since their January 2024 launch remain substantial, totaling $56.5 billion. Total net assets across products stand near $115.9 billion.
Ethereum ETFs Track Bitcoin’s Weakness
Ethereum ETFs followed a similar path, posting $611 million in net outflows over the same four-day period. Wednesday again proved the heaviest session, with $298 million redeemed, followed by $230 million on Tuesday.
The drawdown reversed the prior week’s trend, when ether ETFs recorded $479 million in net inflows, driven largely by BlackRock and Grayscale products. Total net assets across U.S. spot Ethereum ETFs now stand at approximately $17.7 billion, with cumulative net inflows of $12.3 billion since their launch in July 2024.
Investor Takeaway
Which Crypto ETFs Defied the Trend?
Not all crypto-linked ETFs saw money exit. Spot Solana ETFs attracted $9.6 million in net inflows during the week, extending a run of positive flows. Bitwise’s BSOL continued to lead the category by assets under management.
Spot XRP ETFs posted a net outflow of $40.6 million. Tuesday accounted for most of the redemptions, with $53 million leaving the funds, while the remaining sessions saw modest inflows between $3 million and $7 million. The week followed XRP ETFs’ first daily net outflow since their mid-November debut earlier in January.
Market participants have pointed to a wider divergence between crypto and traditional assets. “Crypto has been weaker relative to other asset classes, with investors feeling more comfortable taking positions in stocks than in crypto,” said Min Jung, research associate at Presto Research, in comments previously published by The Block.
On-Chain Data Points to a Shift in Market Behavior
ETF outflows have coincided with a change in on-chain metrics. According to a CryptoQuant report published Thursday, bitcoin holders have begun realizing net losses for the first time since October 2023.
CryptoQuant reported that the market has moved from a profit-taking phase into a loss-realization phase over the past 30 days, with cumulative realized losses totaling about 69,000 BTC since Dec. 23. The firm added that the current on-chain structure resembles patterns seen during the 2021–2022 transition from bull to bear market conditions.
Together, ETF flows and on-chain data suggest that investor behavior is becoming more defensive, even as headline prices have avoided a sharp breakdown so far.
