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Hassan Shittu
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U.S. spot Bitcoin exchange-traded funds have shed roughly $1.1 billion over the past three trading days, nearly erasing the modest gains recorded at the start of 2026.
Data from SoSoValue shows that through January 8, there were daily net outflows of $398.95 million, following heavier redemptions earlier in the week, with outflows peaking at $486.08 million on January 7.
The three-day slide comes after a strong inflow of $697.25 million on January 5, showing how volatile flows have become as investors reposition around price moves.
ETF Investors Rotate Positions as Trading Activity Stays High
Despite the recent selling, the broader picture remains intact. Since launch, U.S. Bitcoin spot ETFs have attracted a cumulative $56.65 billion in net inflows, and total net assets still stand at $117.66 billion.
That figure represents about 6.48% of Bitcoin’s total market capitalization, confirming that ETFs now control a meaningful share of circulating supply and are deeply embedded in the market’s structure.
Trading activity also remains elevated, as on January 8 alone, Bitcoin ETFs saw $3.08 billion in value traded, suggesting active rotation rather than a wholesale exit.
The recent outflows have been concentrated in the largest products. BlackRock’s iShares Bitcoin Trust, the biggest fund in the sector, recorded $193.34 million in net outflows on January 8, equivalent to roughly 2,130 BTC.
Even so, IBIT still holds $70.41 billion in assets, accounting for nearly 4% of Bitcoin’s total market value, and continues to dominate trading volumes with $2.20 billion exchanged on the day.
Fidelity’s FBTC also saw $120.52 million leave the fund, while Grayscale’s GBTC posted another $73.09 million in redemptions, pushing its cumulative net outflows to more than $25 billion since conversion.
Smaller funds showed mixed behavior, with Bitwise’s BITB and WisdomTree’s BTCW recording modest inflows, while several others, including VanEck’s HODL and Invesco’s BTCO, saw flat flows.
Bitcoin ETFs Reverse Weekly Gains; January Still Slightly Positive
The uneven distribution suggests that investors are selectively rotating capital rather than abandoning the asset class altogether.
On a weekly basis, Bitcoin ETFs posted a net outflow of $431.02 million, reversing the prior week’s $458.77 million inflow.
For January as a whole, flows remain slightly positive at around $40 million, a sharp contrast to December 2025, when ETFs lost more than $1 billion, and November, which saw even heavier redemptions.
Earlier in the fall, September and October each recorded inflows exceeding $3.4 billion, coinciding with higher prices and stronger institutional demand.
Since then, total ETF assets have declined from a peak above $150 billion to current levels.
Bitcoin Price Remains Firm as ETF Volatility Persists
Bitcoin’s price action has remained relatively steady through the ETF volatility.
The asset briefly dipped toward $89,190 before rebounding above $90,000 and is trading near $90,224, up slightly on the day.
While Bitcoin remains about 28% below its all-time high of $126,080, it has posted modest gains over the past week and continues to show resilience amid reduced trading volumes.
The pullback in Bitcoin ETFs has occurred alongside mixed flows in other crypto-linked products.
U.S. Ethereum spot ETFs recorded $159.17 million in net outflows on January 8, though cumulative inflows remain strong at $12.53 billion.
In some sessions, ETH ETFs have even attracted capital on days when Bitcoin products saw redemptions, pointing to portfolio rotation rather than wholesale risk reduction.
XRP spot ETFs also posted their first day of net outflows this week after more than a month of uninterrupted inflows, suggesting broader short-term caution across digital asset products.
Even so, institutional interest continues to expand, with Morgan Stanley filing registration statements this week to launch its own spot Bitcoin ETF, alongside proposed Ethereum and Solana products.
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