Bitcoin ETFs Experience Major Outflows as Investor Sentiment Dips

Bitcoin exchange-traded funds (ETFs) have faced significant outflows totaling $1.128 billion over three consecutive trading days, nearly negating the net inflows observed during the opening days of 2026. Meanwhile, Ethereum ETFs also experienced continued net outflows, although some major altcoin ETFs managed to attract new investments on January 8.

Key Takeaways:

Bitcoin ETFs experienced $1.128 billion in outflows over three days, nearly reversing early 2026 inflows.
January brought initial inflows but sentiment shifted quickly, leading to substantial outflows.
Bitcoin price is currently facing critical support levels pending a U.S. court ruling on tariffs, which may impact market direction.
Resilient demand continues for selected altcoin ETFs despite the overall downturn in Bitcoin and Ethereum ETFs.

Bitcoin ETF Trends Take a Sharp Turn

Data from SoSoValue indicates that Bitcoin ETFs ended 2025 on a low note. In November, these ETFs saw outflows amounting to $3.48 billion, which was the second-highest monthly outflow recorded, slightly behind February's $3.56 billion. In December, outflows lessened to $1.09 billion.

The start of the new year saw a brief surge in activity as Bitcoin ETFs collected $471.14 million in net inflows on January 2, followed by another $697.25 million on January 5. This marked the largest single-day inflow in nearly three months, bringing the total for the two days to $1.17 billion.

However, this uptrend did not last. On January 6, the ETFs recorded $243.24 million in outflows, escalating to $486.08 million on January 7—the largest outflow since November 20. By January 8, an additional $398.95 million had exited, culminating in a total outflow of $1.128 billion over the three-day period.

“Investor risk appetite is clearly diminishing as funds move away from BTC exposure,” stated Coin Bureau.

BlackRock’s IBIT experienced $193.34 million in net outflows, while Fidelity’s ETF noted a decrease of $120.52 million. ETFs from Ark & 21Shares and Grayscale also reported net outflows. On the other hand, WisdomTree’s Bitcoin ETF saw moderate inflows, while other funds recorded no movements.

Meanwhile, spot Ethereum ETFs saw similar declines with $159.17 million in net outflows on Thursday, building on a $98.45 million outflow from the prior day.

In contrast, newly launched altcoin ETFs showed resilience. XRP ETFs rebounded with $8.72 million in net inflows on Thursday after a prior day’s outflow of $40.8 million. Additionally, Solana ETFs marked their eighth day of consecutive inflows, adding $13.64 million on Thursday.

Bitcoin's Price Faces a Pivotal Moment Ahead of US Court Ruling

The decrease in ETF demand coincides with a recent downturn in Bitcoin prices. The largest cryptocurrency has seen a 1.3% decline since Monday, currently trading at $90,360, reflecting a slight gain of 0.38% over the last 24 hours.

Market analyst Ted Pillows pointed out that Bitcoin is now in a trading stalemate. He noted, “Bitcoin needs to reclaim the $92,000 level, or it risks dropping towards the $88,000 zone, which also has a CME gap.”

Additionally, Pillows mentioned that market direction could become clearer today as investor focus shifts to a US court ruling on President Trump’s tariffs. Although a ruling is not guaranteed, “decision day” has sparked speculation that the tariff case could be addressed.

Market participants on Polymarket estimate about a 75% chance that the court will rule against the tariffs. If this happens, it could lead to the Treasury returning between $133 billion and $140 billion to importers.

This situation may introduce volatility across crypto, equity, and fixed-income markets. However, some analysts believe that such a move might indicate a market bottom. “If the Supreme Court cancels Trump’s tariffs today, Bitcoin and crypto may have just hit a local bottom. The removal of tariffs means less uncertainty, reduced costs, and improved earnings expectations. This situation often leads to a rebound in risk assets,” remarked Master of Crypto.

In summary, the significant drop in Bitcoin ETF flows underscores a growing sense of caution among investors, even as demand for some altcoin products remains steady. As the markets await clarity on potential developments from the US court ruling on tariffs, we can expect that short-term price movements will likely respond to broader economic trends.