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Bitcoin and Ethereum ETFs Face Major Withdrawals Amid Market Correction

Bitcoin and Ethereum ETFs experienced significant outflows as market volatility increased.

In a notable shift, Bitcoin and Ethereum exchange-traded funds (ETFs) encountered significant withdrawals during a recent market downturn. Between January 26 and January 30, U.S.-listed Bitcoin ETFs saw net outflows totaling approximately $1.5 billion. This period marked one of the weakest stretches for Bitcoin ETFs this year, as reported by Farside Investors.

The selling pressure corresponded with a sharp decrease in Bitcoin”s price, which briefly hovered around $82,000. Nonetheless, key technical support levels have remained intact, indicating that the price movement may be more of a positioning adjustment rather than a fundamental breakdown in market structure.

On January 29 alone, Bitcoin ETFs suffered outflows of about $818 million, followed by an additional $510 million on January 30. This two-day span accounted for the majority of the week”s losses, effectively wiping out gains accumulated earlier in January. The overall trend during this period revealed a growing sense of caution among institutional investors as volatility surged across risk assets.

In parallel, Ethereum ETFs experienced sustained withdrawals, albeit on a smaller scale. During the same five-day timeframe, Ethereum products recorded net outflows close to $327 million. The most significant selling pressure was observed at the week”s conclusion, with January 29 and 30 collectively accounting for more than $400 million in withdrawals. Prior inflows were insufficient to counteract this selling, leaving Ethereum ETFs firmly in negative territory despite ongoing interest in staking-enabled products.

Contrastingly, Solana ETFs exhibited greater stability during this tumultuous period. Weekly flows remained largely flat, characterized by minor daily inflows and outflows. This neutral movement underscores Solana”s relative resilience, as it avoided the sharper institutional selling that impacted both Bitcoin and Ethereum.

Additionally, the situation for XRP ETFs was particularly striking. A single day of outflows, totaling nearly $93 million, erased all previously accumulated net inflows. This dramatic reversal highlights the fragility of liquidity and the lower assets under management, accentuating how a single risk-off trading session can significantly impact ETF flows.

The ETF outflows coincided with a broader market correction that pulled Bitcoin down toward $82,000. Despite this decline, price action suggests that major support zones are still holding strong, with no evident signs of forced selling or structural stress. For now, the ETF data reflects short-term caution rather than a wholesale exit, as investors reevaluate their exposure following January”s volatility.

The information in this article serves educational purposes and does not constitute financial, investment, or trading advice. Always conduct thorough research and consult with a licensed financial advisor before making any investment decisions.

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