U.S. Bitcoin and Ether ETFs Lose Nearly $1 Billion Amid Crypto Selloff

U.S.-listed spot bitcoin and ether ETFs faced one of their largest combined outflow days of 2026 on Thursday, as falling crypto prices, rising volatility, and macroeconomic uncertainty prompted investors to pull back.

According to SoSoValue, bitcoin ETFs saw $817.9 million withdrawn on Jan. 29, the largest single-day outflow since Nov. 20. Ether ETFs also experienced heavy redemptions, totaling $155.6 million.

The selling came alongside sharp declines in crypto markets. Bitcoin dropped below $85,000 before sliding toward $81,000 during U.S. trading hours, later stabilizing near $83,000 in Asian markets Friday morning. Ether fell more than 7% on the day.

BlackRock’s IBIT led bitcoin ETF outflows with $317.8 million withdrawn, followed by Fidelity’s FBTC at $168 million and Grayscale’s GBTC at $119.4 million. Smaller funds, including Bitwise, Ark 21Shares, and VanEck, also saw notable withdrawals.

Ether ETFs followed a similar pattern. BlackRock’s ETHA lost $54.9 million, Fidelity’s FETH saw $59.2 million exit, and Grayscale’s ether products continued to shed assets. Total ether ETF holdings fell to $16.75 billion from over $18 billion earlier this month.

The broad-based selling suggests institutional investors were trimming overall crypto exposure rather than rotating between bitcoin and ether—a change from early January, when inflows into ether funds often offset weakness in bitcoin products.

Analysts point to rising volatility across risk assets and uncertainty over U.S. economic policy as key factors. Speculation around Federal Reserve leadership, with Kevin Warsh viewed as bearish for bitcoin, added to cautious sentiment.

ETF flows currently appear to be tracking price movements rather than leading them. Analysts expect demand for bitcoin and ether ETFs to remain fragile while prices are under pressure, with investors waiting for volatility to ease before re-entering the market.

“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, and a brief gold/silver dip,” said Andri Fauzan Adziima, Research Lead at Bitrue, in a Telegram message.

“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,” Adziima added.