Bitcoin exchange-traded funds (ETFs) encountered a significant reversal in investor flows during the last week, as the digital currency’s value plunged to a nine-month trough. On January 29, data revealed that Bitcoin ETFs suffered a net daily withdrawal amounting to approximately $817.87 million. This extensive pullout contributed to a negative trend for the month of January overall, even though the total net inflows for Bitcoin ETFs since their inception stand robustly at $55.52 billion.
The ETF with the largest asset base, BlackRock’s iShares Bitcoin Trust (ticker: BLK), led the day's decline in value, recording $317.81 million in net outflows. Fidelity’s FBTC (ticker: FNF) also exhibited marked investor withdrawals, shedding $168.05 million on the same date. Grayscale’s GBTC (ticker: GBTC), traded over the counter, confronted a daily outflow of $119.44 million as well.
This pronounced one-day retreat occurred against the backdrop of heightened volatility throughout January. The month finished with an estimated cumulative net outflow of around $1.1 billion for Bitcoin ETFs, mirroring a similar pattern observed in December 2025. The downtrend materialized in tandem with steep declines across the broader cryptocurrency market.
Bitcoin’s market price dropped to lows near $81,200, breaking through the $84,000 support threshold that had been intact since mid-November. Market analysts have warned that this bearish momentum could persist, with forecasts suggesting even lower price levels in the near term.
The considerable daily and monthly outflows from Bitcoin ETFs reflect growing investor apprehension about the cryptocurrency sector's current instability. Despite a legacy of significant cumulative inflows that demonstrate overall investor interest since these products launched, recent shifts in market sentiment indicate a cautious stance moving forward.
These conditions bear consequences for funds structured around Bitcoin exposure, especially concerning their asset undervaluation risk, income stability, and redemption pressures. The continuation of bearish conditions may prompt additional divestments, impacting both fund performance and investor confidence.