Digital Asset Investment Products See $454M Net Outflow in Latest Week

Bitcoin and Ether exchange-traded funds (ETFs) recorded over $1 billion in combined outflows in early 2026, according to data from SoSoValue. The pullback reversed modest inflows seen in the first week of the year and signals renewed caution among investors.

The outflows came after a brief rebound in early January, when Bitcoin ETFs attracted $1.17 billion in inflows. However, sentiment quickly shifted, with ETFs recording $1.128 billion in outflows over three consecutive trading days.

Ethereum ETFs also experienced a similar trend, with $258 million in outflows since January 7. Altcoin ETFs, by contrast, showed relative strength, with XRP, Solana, and Dogecoin funds posting $101.7 million in net inflows.

Why Did This Happen?

The outflows reflect growing caution following a period of volatility in October 2025, which included a $20 billion liquidation event. Analysts describe the event as controlled deleveraging rather than a systemic collapse, but it prompted investors to reassess risk exposure.

Bitcoin and Ether ETFs saw their strongest inflows in mid-2025, particularly in July, when Bitcoin funds gained over $6 billion and Ether products more than $5 billion.

However, inflows slowed in the following months, and outflows became notable in August and November.

The early 2026 pullback also follows a fragile year-end sentiment. CoinShares reported $446 million in outflows from crypto exchange-traded products (ETPs) during the Christmas period.

How Did Markets React?

The broader cryptocurrency market remains in a state of fear, as reflected by the Crypto Fear & Greed Index. Bitcoin, at the time of writing, hovered near $90,000, while Ethereum struggled to break above $3,000.

Bitcoin ETFs saw daily net outflows of $398.95 million on January 8, with BlackRock’s IBIT leading the outflows with nearly $193.34 million. Fidelity’s FBTC and Grayscale’s GBTC also posted significant redemptions.

Ethereum ETFs extended their outflow streak, with $159 million exiting on January 8. BlackRock’s ETHA fund alone lost $107.65 million.

What Are Analysts Watching Next?

Market analysts are closely watching a potential U.S. court ruling on President Donald Trump’s tariffs. A decision against the tariffs could see $133 billion to $140 billion returned to importers, potentially injecting volatility into crypto, equity, and fixed-income markets.

The political climate also remains a concern for markets. Tensions between the White House and the Federal Reserve have escalated, with Fed Chair Jerome Powell suggesting the administration had pressured the central bank to cut interest rates. This has raised concerns about the independence of the Fed and could impact investor confidence.

Investors are also watching the potential passage of a digital asset market structure bill. The bill, currently under consideration in the Senate, could shape the regulatory landscape for the industry. However, its passage may be delayed due to the 2026 midterm elections.