Bitcoin ETFs Lose $1.5 Billion In A Week

Bitcoin ETF Outflows Top $1.49B

Bitcoin ETFs lost nearly $1.5B in just five trading days. This alone accounted for 93% of the month’s $1.6B net outflow, making it one of the worst months since spot ETFs launched.

The pain peaked on January 29, with a single-day outflow of $817.8 million, mostly during a steep BTC price drop below $85,000. Market volatility, macro uncertainty, and declining BTC sentiment likely drove the redemptions.

BlackRock (IBIT) Alone Sold Over 11,000 BTC

BlackRock’s IBIT ETF was hit the hardest. Over the five-day span, IBIT saw $947.2 million in outflows, equivalent to roughly 11,170 BTC sold.

This sell-off came mainly on Jan 29 and 30, when BTC broke below key support levels and retail panic intensified. Combined with other issuer flows, the data suggests a short-term institutional retreat.

Ethereum ETFs: $327M Outflows in a Week

Ethereum ETFs mirrored the Bitcoin trend. From Jan 26 to 30, $327.1 million exited Ethereum spot ETFs, the worst weekly performance in months.

Outflows peaked on January 30, when $252.9 million was withdrawn in a single day.

BlackRock’s ETH ETF (ETHA) Sold ~95,000 ETH

BlackRock’s ETHA ETF saw $264 million in outflows over the week. This translated into a net sell-off of approximately 94,995 ETH.

The biggest exits came on Jan 30, with ETH down sharply after breaking below $2,500. IBIT’s and ETHA’s twin outflows show that even heavyweight issuers weren’t immune to investor jitters.

What to Watch For Next

Next, focus on whether ETF outflows continue or stabilize as February begins. If redemptions slow, it would signal that institutions are done de-risking and may start rebuilding positions. However, another week of heavy withdrawals would confirm a broader shift away from crypto exposure.

At the same time, watch BlackRock’s behavior closely. IBIT and ETHA selling has driven much of the pressure. If flows flip back to neutral or positive, market sentiment could recover quickly. On the other hand, continued selling from the largest issuers would likely cap any near-term rallies.

Macro signals also remain critical. Federal Reserve messaging, Senate confirmation drama around Kevin Warsh, and government shutdown risks could all add volatility. Any hint of rate cuts or liquidity support would likely ease pressure on both Bitcoin and Ethereum.

Finally, monitor price reaction around key technical levels. Bitcoin holding above the low $80,000 range and Ethereum defending the $2,500 area would suggest forced selling is largely finished. A clean breakdown, however, could trigger another round of ETF-driven liquidations and extend the correction.