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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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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.