On January 23, Bitcoin exchange-traded funds (ETFs) recorded a notable outflow of $103.57 million, continuing a trend of five consecutive days marked by net redemptions. The recent sell-off has seen a total of approximately $1.72 billion drained from Bitcoin ETFs since January 16.
Leading the withdrawals was BlackRock”s IBIT, which accounted for $101.62 million of the outflows. Additionally, Fidelity”s FBTC saw redemptions totaling $1.95 million. This extended period of outflows has resulted in total net assets under management falling to $115.88 billion, down from $124.56 billion just a week prior.
As the market experienced this downturn, the cumulative total net inflow into Bitcoin products decreased to $56.49 billion from $57.82 billion. Notably, most Bitcoin ETFs did not see any flows on January 23, with only IBIT and FBTC showing significant activity.
The wave of outflows initially began on January 16, when Bitcoin ETFs experienced a loss of $394.68 million, reversing a previous four-day inflow streak that had brought in $1.81 billion. Following a weekend pause in trading, the redemptions resumed on January 20, with another $483.38 million exiting the funds. The largest single-day outflow occurred on January 21, with a staggering $708.71 million leaving the market, followed by $32.11 million on January 22.
On January 23, trading volume for Bitcoin ETFs decreased to $3.36 billion from $5.51 billion two days earlier. The sustained pressure from sellers has erased the gains that had been seen earlier in January, when Bitcoin ETFs were attracting substantial institutional investments.
Other notable Bitcoin products, including Grayscale”s GBTC, Bitwise”s BITB, Ark & 21Shares” ARKB, VanEck”s HODL, Invesco”s BTCO, Valkyrie”s BRRR, Franklin”s EZBC, WisdomTree”s BTCW, and Hashdex”s DEFI, reported zero flows on January 23. Despite these challenges, BlackRock”s IBIT still holds a robust $62.90 billion in cumulative net inflows, while Fidelity”s FBTC has accumulated $11.46 billion.
Furthermore, the situation is not isolated to Bitcoin; Ethereum ETFs have also faced outflows, totaling $41.74 million on January 23. This marked the fourth consecutive day of redemptions, with BlackRock”s ETHA leading the withdrawals at $44.49 million and Grayscale”s ETHE contributing $10.80 million in outflows. Interestingly, Grayscale”s mini ETH trust saw $9.16 million in inflows, while Fidelity”s FETH experienced $4.40 million in positive flows.
The cumulative outflow for Ethereum over the four-day period has reached approximately $611 million, with total net assets decreasing from $20.42 billion on January 16 to $17.70 billion. The trading volume for Ethereum ETFs also fell to $1.31 billion on January 23, down from $2.20 billion on January 21.
