Bitcoin and Ether ETFs See $1B Outflows as Early-Year Rebound Fades

United States spot Bitcoin and Ether ETFs recorded more than $1 billion in combined outflows this week, wiping out gains made at the start of 2026. Data from SoSoValue shows spot Bitcoin funds lost around $1.13 billion between Tuesday and Thursday, nearly canceling the $1.17 billion of inflows posted on Jan. 2 and the following Monday.

Spot Ether ETFs followed a similar path. After modest inflows earlier in January, about $258 million exited Ether funds since Wednesday. The quick reversal points to weak conviction behind the early-year rebound, with investors cutting exposure as sentiment softened.

The pullback continues a cautious tone that carried over from late 2025 rather than marking a new trend shift.

Fragile Sentiment Carried Over From Year End

Notably, the crypto exchange-traded products shed $446 million over the Christmas period, reflecting thin liquidity and defensive positioning after months of market swings.

SoSoValue’s monthly data shows that July 2025 marked the peak accumulation phase for both Bitcoin and Ether ETFs. Spot Bitcoin funds drew more than $6 billion that month, while Ether products saw inflows exceeding $5 billion.

Since then, momentum faded. Bitcoin ETFs recorded $750 million in outflows in August, recovered briefly in September and October, then suffered their second-largest monthly outflow of 2025 in November, when $3.48 billion exited. Ether ETFs followed the same direction at a smaller scale, with inflows turning negative in November and December.

October Liquidation Changed Risk Appetite

The shift in ETF flows followed October’s sharp market correction, when a roughly $20 billion liquidation event forced widespread deleveraging across crypto markets. Analysts described the move as controlled rather than systemic, but it reset risk tolerance across large portfolios.

While the event did not signal structural failure, ETF data shows investors reassessed exposure in the weeks that followed. Redemptions accelerated into November and December, and the cautious stance has now extended into early 2026.

Not all crypto ETFs saw pressure. Spot ETFs tracking XRP and Solana continued to post steady monthly inflows since their launch in late 2025. While volumes are smaller than Bitcoin and Ether funds, they avoided outflow months entirely.