Bitcoin and Ethereum ETFs see nearly $1 billion in net outflows in a single day, signaling increased institutional de-risking activity

On January 22, news reports indicate that both the US spot Bitcoin ETF and Ethereum ETF experienced a rare large-scale capital outflow this Wednesday, reflecting that institutional investors are significantly tightening risk exposure amid rising macroeconomic uncertainty. Data shows that the net daily outflow of the spot Bitcoin ETF was approximately $709 million, the largest in nearly two months, while the Ethereum ETF saw about $287 million in withdrawals, totaling nearly $1 billion combined.

As funds exited, Bitcoin’s price briefly dropped to around $87,000, and Ethereum also experienced a short dip before rebounding. Subsequently, with Trump announcing an agreement with NATO regarding Greenland and temporarily halting tariffs on EU countries, market sentiment significantly improved. Cryptocurrency assets experienced a technical rebound, with Bitcoin regaining the $90,000 level and Ethereum climbing back above $3,000.

Market analysis suggests that this round of selling is more like a typical institutional risk-off move rather than a negation of the long-term value of cryptocurrencies. Rachael Lucas pointed out that in an environment of rising interest rates, geopolitical tensions, and increased volatility in the bond market, institutions tend to prioritize reducing high-volatility positions, naturally leading to the reduction of holdings in Bitcoin and Ethereum.

It is noteworthy that even after this retracement, the total assets of the spot Bitcoin ETF remain above $100 billion, and since its launch, it has accumulated net inflows of over several hundred billion dollars. This indicates that the long-term allocation trend of institutional funds toward Bitcoin ETFs has not been disrupted, and the current outflows are more of a phase adjustment.

Meanwhile, there has been divergence within crypto ETFs. In contrast to Bitcoin and Ethereum ETFs, XRP and Solana-related ETFs recorded small net inflows on the same day, reflecting that some funds are seeking relatively different risk exposures.

Vincent Liu stated that, given that macro pressures have not fully eased, the crypto market can still stabilize after rapid deleveraging, indicating that the medium-term structure has not deteriorated. Going forward, ETF capital flows, US interest rate trends, and changes in the global bond market will remain key variables influencing the price trajectories of Bitcoin and Ethereum.