Bitcoin and Ethereum ETFs See Inflows Return as Prices Remain Under Pressure

Bitcoin ETFs experienced a return of inflows on January 12, 2026, after a week of outflows driven by fading rate-cut expectations and rising geopolitical risks. The total daily net inflow for Bitcoin ETFs reached $116.67 million, with Fidelity's FBTC product leading with $111.75 million in inflows. This marked a reversal from the previous four days of outflows, which totaled $1.38 billion between January 6 and January 9.

Ethereum ETFs continued to face outflows in early January 2026, recording a net outflow of $68.6 million for the week. Despite a brief rally in early January, Ethereum ETFs saw declining inflows as macroeconomic uncertainty pushed investors into defensive positions. On January 12, Ethereum ETFs posted mild inflows of $5 million, but overall net assets under management dropped to $18.88 billion.

XRP and Solana ETFs, however, saw positive inflows. XRP ETFs recorded $38.07 million in inflows over the week, while Solana ETFs attracted $41.08 million. This selective capital rotation suggests that investors are not entirely withdrawing from crypto but are reallocating to alternative digital assets.

Why Did This Happen?

The shift in investor behavior was driven by macroeconomic uncertainty and changing expectations around monetary policy. Vincent Liu of Kronos Research attributed the outflows to fading rate-cut hopes and heightened geopolitical risks, which pushed investors into a risk-off stance. The market is now waiting for clearer signals from the US Consumer Price Index and Federal Reserve guidance to determine the timing of potential easing.

Bitcoin ETFs had a strong start to the year, posting inflows of $471.14 million on January 2 and $697.25 million on January 5. This contrasted with the subsequent outflows that began on January 6. The reversal reflects the volatility in investor sentiment as traders recalibrate to evolving macroeconomic conditions.

What Are Analysts Watching Next?

Analysts are closely monitoring upcoming macroeconomic data and Federal Reserve decisions. The market is waiting for clearer signals on when rate cuts might resume, which could influence risk appetite and ETF flows. Liu emphasized that positioning is likely to remain cautious until clearer signals emerge.

Bitcoin's price resilience, despite ETF outflows, is a notable trend. The price remains above $92,000 as of January 13, 2026, indicating that institutional investors are maintaining long-term positions while retail investors are reducing exposure. This divergence could influence future trading patterns, with analysts noting that similar price and sentiment mismatches in past cycles have led to opportunities for long-term investors.

Bitcoin ETFs have outpaced gold's early adoption by 600%, according to Bitwise, which highlighted that spot Bitcoin ETFs have attracted $57 billion in net inflows over two years. This rapid institutional adoption underscores Bitcoin's growing role in traditional finance and portfolio construction. Gold ETFs, by comparison, attracted $8 billion in their early phase.

The recent inflow of $116.67 million on January 12 marks a positive shift in Bitcoin ETF sentiment, with cumulative inflows reaching $56.52 billion. This follows a period of outflows that totaled $1.38 billion, indicating that investor behavior remains highly sensitive to macroeconomic developments.

Institutional players remain key to ETF performance. BlackRock's IBIT recorded a $70.66 million outflow on January 12, while Fidelity's FBTC attracted $111.75 million in inflows. The disparity highlights the diversity of investor behavior, with some institutions maintaining long-term positions while others reduce exposure to mitigate risk.

Overall, the return of inflows to Bitcoin ETFs, despite ongoing outflows for Ethereum and mixed performance for other assets, illustrates the evolving dynamics in crypto markets. The combination of macroeconomic uncertainty and shifting investor sentiment continues to shape ETF flows and digital asset prices.