The cryptocurrency ecosystem is reeling from a turbulent week as US spot Bitcoin exchange-traded funds (ETFs) recorded an alarming $1.33 billion in outflows. This marks the worst performance for these financial products in nearly a year and highlights the frailty of investor sentiment in the current market landscape.
During a shortened four-day trading week, the outflows were primarily led by BlackRock’s iShares Bitcoin Trust (IBIT), which reported withdrawals on all four trading days. The largest single-day mass exit occurred on Wednesday, where $709 million fled the fund, followed closely by $483 million exiting on Tuesday. By the end of the week, the drain had subsided somewhat, with $32 million leaving on Thursday and $104 million on Friday.
This wave of selling pressure came as Bitcoin’s price slipped below the $90,000 mark, reaching a low of $87,215 on January 21. Several macroeconomic factors contributed to this downturn, notably President Trump’s threats of imposing a 10% tariff on eight European NATO members and the rising yields of Japanese government bonds. Even after Trump retreated from his tariff stance, concerns surrounding delayed US regulatory frameworks for cryptocurrencies continued to plague investor confidence.
While Bitcoin ETFs faced a drubbing, Ethereum ETFs fared poorly as well, registering $611 million in outflows for the same period. This recent trend shifted significantly from the previous week, during which investor enthusiasm had seen Ether ETFs enjoying $479 million in inflows.
To put the gravity of last week’s outflows into context, $1.33 billion represents the second-largest weekly outflow on record for Bitcoin ETFs, only eclipsed by the $2.61 billion that departed in February 2025, during a particularly volatile market phase.
The cumulative net inflow for US spot Bitcoin ETFs since the beginning of 2024 still stands at a remarkable $56.5 billion, with total assets now hovering around $115.9 billion. However, the significant losses faced in the past week could foreshadow a shift in market dynamics.
BlackRock’s IBIT, currently managing approximately $69.75 billion in net assets—around 3.9% of Bitcoin’s total circulating supply—remains one of the foremost establishments in the market, despite the recent downturn. Fidelity’s Wise Origin Bitcoin Fund also exhibited troubling trends, experiencing net outflows of $451.5 million for the week.
Moreover, rising yields in Japanese government bonds also negatively impacted Bitcoin’s allure as a risk asset. With investors now more vigilant about monetary policy, the Bank of Japan’s hawkish stance following its January 23 monetary policy designation added an additional layer of complexity to the market’s health.
The Bitcoin Fear & Greed Index reflected this heightened anxiety, plummeting from 49—indicative of a neutral market—to 25, signaling extreme fear and suggesting that many investors are in an overly cautious position. This downturn is likely to prompt further examination of market fundamentals in the coming weeks.
As the market navigates these unpredictabilities, investors are left contemplating the future trajectory for Bitcoin and Ethereum, especially against a backdrop of geopolitical tensions and fluctuating macroeconomic indicators.
