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Crypto ETF Outflows Surge To Nearly $1B as Volatility Spikes

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U.S.-listed spot Bitcoin and Ethereum ETFs recorded one of their worst combined outflow days of 2026 as falling prices and rising volatility pushed institutional investors to cut exposure. Nearly $1 billion exited crypto ETFs in a single session, signaling a sharp shift in institutional sentiment toward digital assets.

According to data from SoSoValue, Bitcoin ETFs alone saw $817.9 million in outflows on January 29, marking their largest single-day withdrawal since November 20. Ethereum ETFs followed with $155.6 million in outflows. The heavy selling coincided with a broader crypto market downturn, where Bitcoin dropped below $85,000, briefly fell to $81,000, and later recovered to around $83,000. Ethereum also declined by about 6% within 24 hours.

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Other spot crypto ETFs were not spared. XRP ETFs experienced notable outflows totaling $92.92 million, while Solana ETFs saw relatively minor withdrawals of $2.22 million, suggesting selective risk reduction rather than rotation into alternative crypto assets. This pattern indicates that institutions are broadly pulling back from crypto exposure rather than reallocating within the sector.

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Dollar Liquidity Tightens, Pressuring Bitcoin Prices

Among individual funds, BlackRock’s IBIT suffered the largest loss with $317.8 million in outflows, followed by Fidelity’s FBTC at $168 million. On the Ethereum side, BlackRock’s ETHA lost $54.9 million, while Fidelity’s FETH recorded $59.2 million in outflows. This contrasts sharply with early January, when crypto ETFs consistently attracted fresh capital.

BitMEX founder Arthur Hayes linked Bitcoin’s price decline to a tightening of U.S. dollar liquidity. He noted that roughly $300 billion has been drained from markets in recent weeks, largely due to a $200 billion increase in the U.S. Treasury General Account (TGA). Hayes suggested the U.S. government may be building cash reserves in preparation for a potential government shutdown.

While Hayes previously predicted a Bitcoin rally driven by Federal Reserve intervention in Japan’s weakening yen, current market conditions have continued to deteriorate, weighing heavily on both crypto prices and ETF flows.

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Crypto World

Why Cardano Investors Are Moving Assets to Self-Custody Now

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ADA Price


“Currently, a 10 billion market cap, this thing is not even worth $1 billion,” one X user argued.

The latest cryptocurrency market crash was brutal, sending Cardano’s ADA to multi-month lows.

Some analysts believe the storm may not be over, warning the price could nosedive by as much as 75% in the short term.

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The Bad Days for the Bulls Aren’t Over?

Several hours ago, ADA plunged to 0.27, the lowest level since August 2024. Currently, it trades at around $0.29 (per CoinGecko’s data), representing a 15% decline on a weekly scale.

ADA Price
ADA Price, Source: CoinGecko

The well-known analyst DrBullZeus claimed that the asset is now nearing “a must hold support zone” at the range of $0.24-$0.28. He thinks that breaking below that level could result in a price crash to $0.125 and even $0.075.

The popular trader Matthew Dixon also chipped in. He suggested that “technically speaking,” ADA has retraced in three waves since the local top seen towards the end of 2024. He outlined $0.24 as a “very important long-term support,” predicting that as long as it holds, the price could rebound.

“A break of support would be a serious concern,” he alerted.

Prior to that, Harmonic Trader predicted that in six months, ADA might trade under $0.10. “Currently, a 10 billion market cap, this thing is not even worth $1 billion,” they argued.

Time to Rally?

Despite ADA’s recent price decline, some other analysts remain optimistic that a resurgence could be on the way. One of them, using the X nickname “Lucky,” asked their almost two million followers whether they plan to increase their exposure to the token at current rates. The analyst also envisioned a potential pump to nearly $1 in the near future.

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LaPetite is also bullish. Several days ago, he forecasted that ADA is about to go “parabolic,” claiming that “huge announcements” concerning Cardano are coming soon.

The recent exchange netflows signal that a rebound could indeed be on the horizon. Data provided by CoinGlass shows that over the past days and weeks, outflows have significantly outpaced inflows. This means investors have been shifting from centralized platforms to self-custody, which in turn reduces immediate selling pressure.

ADA Exchange Netflow
ADA Exchange Netflow, Source: CoinGlass
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Aave Shutters Avara Brand and Family Crypto Wallet

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Aave Shutters Avara Brand and Family Crypto Wallet

Aave Labs says it is sunsetting its “umbrella brand” Avara in the company’s latest move to refocus on decentralized finance and simplify its branding.

Aave founder and CEO Stani Kulechov posted to X on Tuesday that Avara, a company encompassing projects including the Family crypto wallet and previously the social media platform Lens, “is no longer required as we go all in on bringing Aave to the masses.”

Kulechov said the Apple iOS-based Family crypto wallet was also being wound down as the team has “learned that onboarding millions of users requires purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences.”

The move marks Aave’s latest effort to refocus on products such as its flagship lending protocol as the project handed stewardship of Lens to the Mask Network last month, with Kulechov saying Aave’s role in the protocol would be reduced to an advisory role so it can focus on DeFi.

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Source: Stani Kulechov

Kulechov said in his latest post that Aave was “now united as one team of world-class designers, engineers, and smart contract experts, aligned around a single mission: bringing DeFi to everyone.”

All future projects under Aave Labs

Avara said in a blog post that “all current and future products, including the Aave App, Aave Pro, and Aave Kit, will operate under Aave Labs” to simplify the brand.

It added that accounts linked to the Family wallets “will continue as core infrastructure within Aave Labs products,” but the iOS app would be wound down over the next year.

No new users will be onboarded to the app from April 1, and existing users can continue using the app until April 1, 2027, and will continue to have full access to their funds on Aave’s website.

Related: There is no trust in DeFi without proper risk management

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Aave is the biggest DeFi protocol with $30 billion in total value locked, nearly $9 billion more than the next largest project, the staking protocol Lido, which has $21.7 billion in value locked, according to DefiLlama.