Bitcoin ETF Investors Face Red as BTC Plunges to 10-Month Low—Here’s the Silver Lining
Bitcoin's latest dive is painting portfolios red. ETF holders are feeling the pinch as the benchmark cryptocurrency hits its lowest point in nearly a year. But for the crypto-native? This is just another chapter in the volatile saga of digital gold.
The ETF Effect: A Double-Edged Sword
The introduction of spot Bitcoin ETFs was hailed as a gateway for mainstream capital. And it was—until the market turned. Now, that very gateway is showing its other side: providing a seamless exit ramp for skittish institutional money during downturns. It's the kind of efficiency Wall Street loves—until it works against them.
Decoupling from the Narrative
Forget the short-term noise. True conviction isn't built on all-time-high champagne toasts; it's forged in these fires. While ETF flows might wobble with every price swing, the underlying technology—the decentralized settlement layer, the immutable ledger—doesn't care about a 10-month chart. The network hums along, blocks get mined, and adoption continues its slow, steady crawl forward. Traditional finance always forgets that crypto winters are for building.
The Long Game in a Short-Term World
Yes, losses sting. But zoom out. Every major drawdown in Bitcoin's history has been a clearance sale for those who understand the macro shift underway. The old guard sees a risky asset crashing; the new guard sees a foundational protocol undergoing stress testing—and holding. Remember, the most cynical finance jab is also the oldest: 'The market can remain irrational longer than you can remain solvent.' In crypto, the irrationality works both ways.
This isn't a crash; it's a clarity. It separates the tourists with their ETF tickers from the residents who are here for the network shift. The red on the screens today is just setting the stage for the next leg up. Volatility isn't a bug in this system; it's the feature that creates opportunity. Now, who's buying?
Bitcoin ETF buyers sink into losses
If you assume a cost basis of inflows on the day they occurred, around 62% of total Bitcoin ETF inflows are now underwater. This marks a sharp reversal from conditions earlier this year when most ETF investors were sitting on gains.
As per the data shared by, US Bitcoin ETFs recorded a net outflow of $509.7 million on Jan 30. Outflows were heavily concentrated. BlackRock’s iShares Bitcoin Trust posted withdrawals of $528.3 million on the day.
A small number of funds saw modest inflows. ARK Invest’s ARKB recorded an inflow of $8.34 million. This lifted its total inflows to around $1.48 billion. Fidelity’s FBTC added $7.3 million, bringing cumulative inflows to about $11.27 billion.
If you assume a cost basis of inflows on the day they occurred, 62% of ETF inflows are now underwater. https://t.co/GVbgA1gNRR pic.twitter.com/kM0xFU15I0
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) February 2, 2026
The ETF selling coincided with renewed weakness in BTC price. The biggest crypto price has dropped by almost 13% over the past 30 days. It went on to fall to $74,000 levels. This is close to its lowest level since US President Donald TRUMP returned to the White House. Since Jan 16, spot bitcoin ETFs have recorded consistent daily outflows with only one session of net inflows.
Bitcoin has now dropped nearly 10% in January. That marked its fourth consecutive monthly decline. It is now the longest losing streak since 2018. Bitcoin is trading at an average price of $78,960 at the press time.
The pullback came in with the broader market stress. Gold extended losses on Monday after suffering its steepest fall in more than a decade late last week. Risk sentiment across global markets has weakened, adding pressure to digital assets.
Ether ETFs bleed $253M
Ethereum faced even heavier pressure. Data shows that US Ether ETFs recorded combined outflows of $252.9 million on Jan 30. BlackRock’s ETHA fund lost $157.2 million, while Fidelity’s FETH saw $95.7 million in withdrawals. Ether’s price has dropped by more than 18% over the last 7 days. ETH is trading at an average price of $2,365 at the press time.
Solana was also hit. The token dropped nearly 10% to about $105.36. Solana-linked ETFs recorded $11.3 million in outflows, with most selling coming from funds run by Bitwise and Grayscale. Ripple’s XRP stood out. While its price slipped 2.21% to about $1.66, XRP was the only major crypto asset to record net ETF inflows. SoSoValue data showed XRP products attracted $16.79 million.
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