US Spot Bitcoin ETFs Bleed $1.33B in One Week: The Worst Outflows in a Year
The honeymoon's over. After a year of explosive inflows, US spot Bitcoin ETFs just hit a wall of redemptions.
The Great Unwind
Investors pulled the plug—hard. The $1.33 billion exodus marks the most significant weekly withdrawal since these funds launched, turning the once-unstoppable inflow narrative on its head. It's a classic case of 'what the Fed giveth, the Fed taketh away,' as traders reassess risk in the face of shifting macro winds.
Reading the Tape
This isn't just noise. The sheer scale of the outflow signals a sentiment shift among institutional and retail players alike. Some are locking in profits, others are fleeing to perceived safety—either way, the easy money phase looks done. It's a necessary pressure test for a market that had gotten a little too comfortable with one-way traffic.
The Silver Lining Playbook
For the crypto-native, this is familiar territory. Sharp corrections often flush out weak hands and reset leveraged positions, creating a healthier foundation for the next leg up. History shows the deepest fears sometimes plant the seeds for the strongest rallies. Just ask anyone who held through 2022.
So, is this the end of the ETF story? Hardly. It's more like the first real chapter—where theory meets the volatile, profit-taking reality of Wall Street. After all, in traditional finance, a 'long-term hold' often means until the next quarterly report.
Midweek Bitcoin ETF Outflows Surge as $709M Exits in Single Day
Selling pressure peaked midweek. Wednesday alone saw $709 million exit Bitcoin ETFs, making it the heaviest outflow day of the week.
Tuesday followed closely behind with $483 million in redemptions. Outflows eased toward the end of the week, with $32 million leaving on Thursday and $104 million on Friday.
The magnitude of the withdrawals echoes the turbulence seen in late February 2025, when Bitcoin ETFs lost $2.61 billion in a single week during a sharp market downturn.
That episode, often referred to by analysts as the “February Freeze,” coincided with Bitcoin’s drop from above $109,000 to below $80,000 and included a record $1.14 billion single-day outflow on Feb. 25.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF by assets under management, posted outflows on all four trading days last week.
Data from SoSoValue shows the fund experienced its heaviest redemptions on Tuesday and Wednesday, accounting for a significant share of the overall decline.
1/ US Spot Crypto ETF Weekly Flows (Jan 12-16, ET)
• BTC ETFs: +$1.42B
• ETH ETFs: +$479M
• SOL ETFs: +$46.88M
• XRP ETFs: +$56.83M
Source: SoSoValue#CryptoETF #SoSoValue pic.twitter.com/Wi35m9jMLu
IBIT currently holds about $69.75 billion in net assets, representing roughly 3.9% of Bitcoin’s total circulating supply.
Despite the recent pullback, the broader picture for spot Bitcoin ETFs remains positive.
Since their launch in January 2024, cumulative net inflows stand at $56.5 billion, with total net assets across all US spot Bitcoin ETFs reaching approximately $115.9 billion.
Ethereum ETFs were not spared from the broader risk-off move. Spot Ether ETFs posted $611 million in net outflows for the week, reversing the prior week’s $479 million inflow streak.
Wednesday was again the worst day, with $298 million redeemed, followed by $230 million on Tuesday.
Total net assets for Ether ETFs now sit around $17.7 billion, with cumulative inflows of $12.3 billion since their July 2024 debut.
Solana ETFs Defy Broader Sell-Off as Bitcoin, XRP Funds See Outflows
Not all crypto-linked funds followed the same pattern. Spot solana ETFs continued to attract capital, recording $9.6 million in net inflows over the week, extending a multi-week positive trend.
Bitwise’s BSOL remained the category leader by assets. Spot XRP ETFs, meanwhile, saw mixed flows, ending the week with $40.6 million in net outflows after a sharp $53 million exit on Tuesday.
The ETF drawdowns come amid signs of shifting market dynamics on-chain. According to a CryptoQuant report, Bitcoin holders have begun realizing net losses for the first time since October 2023.
The firm noted the market has moved from a profit-taking phase into a loss-realization phase, with roughly 69,000 BTC in realized losses since Dec. 23, a pattern reminiscent of past transitions from bull to bear markets.
