U.S.-listed spot bitcoin and ether exchange-traded funds experienced one of their heaviest combined outflow days of 2026, with investors pulling close to $1 billion in a single trading session. The sharp withdrawals came as digital asset prices fell, volatility increased, and broader macroeconomic uncertainty weakened investor confidence.
Data from SoSovalue shows U.S. spot bitcoin ETFs recorded approximately $817.9 million in net outflows on January 29, marking their largest daily redemption since late November. Spot ether ETFs also faced sustained selling pressure, with net outflows totaling around $155.6 million on the same day.
Bitcoin and Ether Prices Slide Sharply
The ETF outflows coincided with a notable downturn in crypto prices. Bitcoin dropped below the $85,000 level during U.S. trading hours and briefly approached $81,000 before stabilizing slightly. Ether declined more than 7% over the session, adding to pressure across crypto-linked investment products.
Major ETF providers saw significant redemptions across both assets, while smaller funds also posted notable outflows. Total assets held by U.S. ether ETFs declined to roughly $16.75 billion, down from over $18 billion earlier in the month.
Institutional De-Risking and Volatility Drive Selling
Market observers note that the synchronized selling across bitcoin and ether ETFs suggests institutions were reducing overall crypto exposure rather than reallocating between assets. Rising implied volatility, weakness in broader risk markets, and uncertainty surrounding future U.S. monetary policy contributed to the risk-off sentiment.
Analysts also pointed to the rapid unwinding of leveraged positions as a key factor amplifying the selloff. While the move reflects heightened caution, some market participants view it as a leverage-driven correction rather than the start of a prolonged downturn.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.