Bitcoin ETFs See $1.38 Billion in Outflows in Market U-Turn

U.S. spot Bitcoin exchange-traded funds (ETF) have seen a significant outflow of capital, losing $1.38 billion over four consecutive days. Leading the withdrawals was BlackRock’s iShares Bitcoin Trust (IBIT), which lost $251.97 million in outflows on January 9 alone. The large outflow suggests that large investors are reconsidering their short-term investments in Bitcoin, even while long-term interest in Bitcoin remains strong.

Bitcoin ETF Show Diverging Trends

On the other hand, Fidelity’s Wise Origin Bitcoin Fund (FBTC) was the only Bitcoin spot ETF to gain net inflows, attracting $7.87 million on the same day Notably, Grayscale’s GBTC, ARKB, VanEck’s HODL, Invesco’s BTCO, Franklin’s EZBC, Valkyrie’s BRRR, and Hashdex’s DEFI all recorded zero flows.

It is also worth noting that the bearish sentiment in the market was not just for Bitcoin. Ethereum spot ETFs also struggled, losing nearly $94 million due to net outflows on January 9. This was the third day in a row that Ethereum-based funds saw redemptions

Other crypto ETFs had mixed results. Solana spot ETFs showed no net flows, which indicates that investors are not making big moves either way. Interestingly, XRP spot ETFs gained $4.93 million in inflows, showing renewed interest in XRP

Crypto Investment Products Break Inflow Streak

Similarly, crypto investment products registered outflows amounting to $952 million last month. These outflows come amid delays to the U.S. Clarity Act, which has prolonged regulatory uncertainty

BlackRock’s iShares ETFs also saw the highest outflows, followed by Bitwise Fund Trust with $130 million. Other ETF issuers that recorded losses include Grayscale, ProShares, and Ark Invest. Regarding outflows from digital assets, Ethereum led with $555 million in outflows. Bitcoin followed wth outflows reaching $460 million.

Delay in the U.S. Clarity Act Passing

CoinShares Head of Research James Butterfill explained that the $952 million outflows seen reflected a negative market. Butterfill added that markets are responding to delays in passing the US Clarity Act, which has prolonged regulatory uncertainty for digital assets.

The Clarity Act is intended to provide regulatory clarity in the digital asset sector. Market participants expected the bill to move forward before the end of the year. However, U.S. crypto czar David Sacks has confirmed the bill’s markup for January 2026.

Butterfill also attributed the digital asset outflows to continuous selloff by whale investors. Currently, the total net assets under management fell to $116. 86 billion on January 9 from $123.52 billion on January 5.

The post Bitcoin ETFs See $1.38 Billion in Outflows in Market U-Turn appeared first on TheCoinrise.com.