Spot Bitcoin and Ether exchange-traded funds (ETFs) experienced substantial withdrawals on Tuesday due to ongoing geopolitical and economic uncertainties.

Spot Bitcoin (BTC) ETFs witnessed outflows totaling $483.4 million for the day. The Grayscale Bitcoin Trust ETF (GBTC) was the largest contributor to these outflows, accounting for $160.8 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) followed with $152 million in outflows, according to data from SoSoValue.

Spot Ether (ETH) ETFs recorded $230 million in outflows, ending a five-day positive streak. The BlackRock’s ETHA ETF suffered a significant $92.3 million exit. Meanwhile, spot XRP (XRP) ETFs noted their largest outflow to date at $53.3 million. On the contrary, Solana (SOL) ETFs attracted $3 million in net inflows.

Institutional Caution Amid Geopolitical Issues

“ETF outflows indicate institutional caution in light of international trade tariffs and a broader risk-averse atmosphere,” said Vincent Liu, Chief Investment Officer at Kronos Research. “Japan’s sell-off of bonds along with rising JGB yields tighten global liquidity, impacting risk assets.”

The wave of ETF withdrawals coincided with a general downturn in crypto markets. Bitcoin’s price plummeted below $89,000, having previously reached over $97,000 last week, while Ether fell below $3,000. Analysts attribute this downturn to sustained macroeconomic pressures, including tensions between the US and EU related to Greenland, as well as panic selling of Japanese government bonds, which burden global liquidity and risk assets.

Liu noted that traders are focusing on forthcoming macro updates regarding trade tariffs, with the U.S. Initial Jobless Claims report due on Thursday, January 22, at 8:30 AM. A weak report could heighten growth concerns and fear-driven sentiment.

Despite the recent drops, large holders continued to add to their Bitcoin positions. Accounts holding between 10 and 10,000 BTC accumulated approximately 36,300 coins over the past nine days. In contrast, wallets with fewer than 0.01 BTC trimmed their holdings, according to data from Santiment.

Shifting Control among Bitcoin Holders

Data suggests control over Bitcoin’s market direction is increasingly shifting towards short-term holders, classified as new whales, who possess more than 1,000 BTC but have held their coins for less than 155 days. This group now represents a larger portion of Bitcoin’s Realized Cap compared to established long-term holders, signaling a transition in market dynamics.

“Control has shifted from seasoned, cycle-tested holders to newer investors who entered late in the trend,” commented I. Moreno, an analyst with CryptoQuant. This transition is set to reshape market behaviors moving forward.