Bitcoin and Ether ETFs Experience Over $1 Billion in Withdrawals

Significant Withdrawals in the Crypto Market

In a surprising reversal, exchange-traded funds (ETFs) for Bitcoin and Ether in the U.S. have recorded withdrawals exceeding $1 billion starting Tuesday, following a brief recovery at the beginning of 2026. Data from SoSoValue indicates that Bitcoin ETFs saw approximately $1.13 billion in outflows between Tuesday and Thursday, effectively offsetting the $1.17 billion in inflows reported on January 2 and Monday.

Similarly, Ether ETFs followed a comparable pattern, with around $258 million exiting funds beginning Wednesday, after experiencing modest inflows earlier in the month. This reversal negates the gains accumulated during the early days of the year, emphasizing a renewed caution among investors. It is suggested that the early inflows were fragile, as investors reduced exposure in light of deteriorating sentiment.

The recent withdrawals extend a tone of caution that has persisted since the end of last year. CoinShares reported on December 29 that cryptocurrency exchange-traded products (ETPs) lost $446 million during the Christmas period, reflecting a fragile sentiment at year-end and ongoing caution following previous market volatility.