Bitcoin ETFs Suffer $817M Loss Amid BTC Plunge to 9-Month Low – Is the Worst Over?

Bitcoin ETFs Suffer $817M Loss Amid BTC Plunge to 9-Month Low – Is the Worst Over?

Bitcoin spot exchange-traded funds (ETFs) faced significant one-day losses on January 29, with investors withdrawing nearly $818 million from U.S.-based ETFs as Bitcoin's price dipped to its lowest point in nine months.

According to Sosovalue data, spot Bitcoin ETFs experienced net daily outflows of $817.87 million on January 29, effectively negating earlier monthly gains and resulting in a negative outcome for January overall.

Despite these heavy withdrawals, the cumulative net inflows since the inception of spot Bitcoin ETFs remain impressive at approximately $55.52 billion, indicating substantial market growth even amidst the recent fluctuations.

Key Players in Daily Bitcoin ETF Outflows as January Ends on a Low Note

BlackRock’s iShares Bitcoin Trust, the largest ETF by assets, retained $64.90 billion but led the outflows for the day with a net withdrawal of $317.81 million, translating to about 3,790 BTC.

Following closely was Fidelity’s FBTC, with $168.05 million in outflows, while still holding cumulative inflows of $11.27 billion and total assets of $16.10 billion.

Grayscale’s GBTC continued its ongoing pattern of redemptions, reporting a daily outflow of $119.44 million. Since its transition to an ETF, GBTC has accumulated net outflows of $25.70 billion, although it still maintains $13.42 billion in assets.

Other funds also reported losses, with Bitwise BITB losing $88.88 million, ARK 21Shares ARKB losing $71.58 million, and minor reductions in VanEck, Invesco, and others.

Some lesser ETFs reported zero net flows, indicating no new creations or redemptions during that session.

This significant daily decline occurred against a backdrop of volatility throughout January. After earlier robust inflows of more than $840 million on January 14, market sentiment quickly soured.

ETFs faced large outflows on several occasions, including $708.71 million on January 21 and $483.38 million on January 20.

Over the week, the outflows remained negative, totaling nearly $1 billion for the week ending January 29.

Overall, January concluded with estimated net outflows of about $1.1 billion, a trend also observed in December 2025.

Market Patterns: Crypto and Traditional Finance Decline Together as Risk Appetite Shrinks

The sell-off in ETFs coincided with a sharp decline in the wider cryptocurrency market, with Bitcoin dropping to as low as $81,200, breaking below the significant support level of $84,000 that had persisted since mid-November.

This downturn marked Bitcoin's lowest price since November, as Ether, Solana, and XRP ETFs also experienced net outflows.

The total cryptocurrency market capitalization fell by about 6% on that day, with over $1.8 billion in forced liquidations occurring mainly among long traders.

The weakness was evident beyond cryptocurrencies; traditional markets were similarly impacted, with gold prices dropping sharply after hitting recent record highs, and equity markets suffering declines.

Analysts attributed this downturn to a combination of macroeconomic factors, including renewed tariff threats from U.S. President Donald Trump and concerns about artificial intelligence-related technology stocks following a significant drop in Microsoft shares.

There’s also ongoing uncertainty, as the Federal Reserve maintained interest rates while signaling a wait-and-see approach regarding future adjustments.

CryptoQuant analysts noted that Bitcoin's drop was relatively mild compared to declines in traditional markets, pointing out that gold and silver underwent more intense corrections.

Data revealed that open interest in major exchanges had risen above levels experienced before a major liquidation event in October, indicating a persistent appetite for leverage despite recent volatility.

Bitcoin's Fear and Greed Index fell to 16, reflecting a state often linked to extreme fear and market capitulation.

As bearish sentiment prevails, analysts caution that adverse conditions could linger, suggesting potential price targets may retest the 200-week Simple Moving Average (SMA) around $57,974, recognized as a long-term value level.