Outflows of $1 Billion in Bitcoin and Ether ETFs Amidst Market Decline

Cryptocurrency investment products experienced substantial outflows this Thursday, coinciding with a decline of approximately 6% in the overall crypto market capitalization.

Bitcoin (BTC) and Ether (ETH) investment funds saw almost $1 billion in outflows, the largest so far this year, according to data from SoSoValue.

Leading the wave of outflows, Bitcoin ETFs decreased by $817.9 million—a total surpassing last week’s $708.7 million outflow and marking the biggest daily outflow since November 2025. This downturn in cryptocurrency values correlated with wider market vulnerabilities, including a 4% decline in gold after it recently surged above $5,300, as per TradingView.

Market analysts attribute this slump to renewed tariff threats from US President Donald Trump and increasing concerns surrounding AI-related technology stocks, particularly as shares of Microsoft (MSFT) saw a 10% drop.

January Sees Negative Flows after Over $1 Billion in Outflows

Bitcoin funds recorded ongoing losses this week, with significant outflows including $147.4 million on Tuesday and $19.6 million on Wednesday.

By Thursday, total weekly outflows reached nearly $978 million, pushing Bitcoin ETF flows into negative territory for January due to the additional $1 billion outflow last week.

According to SoSoValue data, Bitcoin ETFs have accumulated about $1.1 billion in net outflows this month.

Despite the sell-off, Bitcoin ETFs continue to play a crucial role in the market, holding $107.65 billion in assets under management (AUM), which is about 6.5% of Bitcoin’s total market capitalization of around $1.65 trillion.

Impact on Altcoin Funds

Negative sentiment also extended to altcoin investment products, with spot Ether ETFs recording outflows of $155.6 million while XRP (XRP) funds saw a reduction of $92.9 million.

Solana (SOL) ETFs faced smaller outflows of $2.2 million after experiencing inflows of around $10 million earlier in the week.

Overall, Ether ETFs, with $16.75 billion in AUM, constitute about 5% of their asset’s market capitalization of approximately $330 billion.

As per an update from CoinShares, total AUM in crypto exchange-traded products (ETPs) stood at $178 billion at the end of last week, representing 5.7% of the entire market capitalization.

At the time of this report, the total market capitalization for cryptocurrencies was around $2.92 trillion, having previously crossed $3 trillion just a day prior.

In light of the sell-off in the broader market brought on by declining Microsoft shares, blockchain analytics firm CryptoQuant noted that high leverage exposure was crucial to the downturn in crypto prices, as indicated by analyst Darkfost, who highlighted that $87.1 million worth of long positions at the decentralized derivatives exchange Hyperliquid were wiped out in just a few hours.