US Bitcoin ETFs Bleed $681M as Institutional Sentiment U-Turns
After a billion-dollar inflow to start the year, US Bitcoin ETFs reversed course with $681 million in weekly outflows led by BlackRock and Fidelity.
The post-holiday liquidity injection evaporated as fast as it arrived.
US spot Bitcoin ETFs posted a net outflow of $681 million for the first full trading week of 2026, erasing over a billion dollars in capital inflows from early January. Data from SoSoValue confirms the reversal marks the sharpest weekly exit since January 2024, signaling a sudden risk-off pivot among institutional allocators.
The week began with a false signal: funds attracted nearly $700 million on Monday, January 5, pushing optimism to yearly highs. By Tuesday, the trend inverted. The sell-off accelerated Wednesday with a single-day exodus of $486 million, the largest daily redemption in months, followed by sustained outflows Thursday ($399M) and Friday ($250M).
BlackRock Joins the Exit
Most notably, the selling pressure was not limited to higher-fee legacy products. BlackRock’s iShares Bitcoin Trust (IBIT), typically a liquidity vacuum for inflows, recorded back-to-back redemptions. On Thursday alone, IBIT saw $193.3 million leave the fund, while Fidelity’s FBTC shed over $120 million.
The composition of the selling suggests this was not a retail panic but a structural de-risking by larger players using the most liquid instruments available.
Market Reaction
Despite the institutional cash drag, Bitcoin (BTC) spot prices have shown surprising resilience. The asset traded tightly around $90,500 (-0.03% 24h), absorbing the selling pressure without breaking critical support levels. This divergence between aggressive ETF outflows and stable spot prices indicates that non-ETF buyers are stepping in to defend the $90,000 floor.
Analysts point to broader macroeconomic friction as the primary driver, with shifting expectations around Q1 interest rate cuts forcing a re-evaluation of risk assets. With over $1.1 billion wiped from ETFs in just 72 hours mid-week, the market enters mid-January with fragile momentum.
