US-listed spot bitcoin and ether exchange-traded funds (ETFs) suffered heavy redemptions on Thursday, with nearly $1 billion moved in a single session as crypto prices fell sharply and risk appetite faded.
According to SoSoValue data, investors withdrew $817.9 million from US spot bitcoin ETFs on January 29, the largest daily outflow since November 20. Ether ETFs also saw sustained selling, losing $155.6 million on the day.
The outflow coincided with a sharp drop in crypto prices. Bitcoin fell through $85,000 and later slid towards $81,000 in US trading hours before approaching $83,000 in Asian morning hours on Friday. Ether fell more than 7% on the day.
BlackRock’s IBIT bore the brunt of bitcoin ETF redemptions, losing $317.8 million. Fidelity’s FBTC lost $168 million, while Grayscale’s GBTC saw a $119.4 million exit. Smaller products were not spared, with Bitwise, Ark 21Shares and VanEck all having meaningful outflows.
Ether ETFs followed a similar pattern. BlackRock’s ETHA lost $54.9 million, Fidelity’s FETH saw a $59.2 million exit, and Grayscale’s ETH products continued to bleed assets. Total ether ETF assets fell to $16.75 billion, down from more than $18 billion earlier this month.
The synchronized selling across bitcoin and ether ETFs suggests that institutional investors reduced overall crypto exposure rather than rotating between assets. That marks a shift from earlier in January, when inflows into ether funds often offset weakness in bitcoin products.
The sell-off came amid rising volatility across risk assets and renewed uncertainty around US economic policy, with analysts viewing Fed challenger Kevin Warsh as bearish on bitcoin.
Rising implied volatility, weakness in stocks and speculation about future Federal Reserve leadership weighed on sentiment.
At the same time, leveraged positioning in crypto markets was aggressively liquidated, adding pressure on spot prices.
So far, ETF flows appear to be tracking price action rather than leading it. As long as bitcoin and ether remain under pressure, analysts expect ETF demand to remain fragile, with investors waiting for volatility to cool before stepping back in.
“Bitcoin plunged to $81,000 on a risk-off wave: hawkish Fed keeps interest rates unchanged soon, strong BTC ETF outflows ($1B+ recently), geopolitical tensions (US-Europe trade swings, Middle East) and a brief gold/silver dip,” said Andri Fauzan Adziima, Research Lead in a Telegram announcement.
“This triggered massive leveraged liquidations after breaking key support (~$85,000 100-week SMA), creating a self-reinforcing selloff in thin liquidity. It’s a leveraged shakeout amid macro pressure, not the start of a bear market, with rebound potential if support holds,” Adziima added.
