Crypto ETF Outflows Hit Nearly $1 Billion as Volatility Rises

U.S.-listed Bitcoin and Ethereum spot ETFs recorded one of their worst combined outflow days of 2026 as falling prices and increasing volatility pushed institutional investors to reduce their exposure. Nearly $1 billion was withdrawn from crypto ETFs in a single session, signaling a sea change in institutional sentiment toward digital assets.

According to data from SoSoValue, Bitcoin ETFs alone saw $817.9 million in outflows on January 29, marking their largest single-day withdrawal since November 20. Ethereum ETFs followed with $155.6 million in outflows. The selloff coincided with a broader downturn in the crypto market, where Bitcoin fell below $85,000, briefly fell to $81,000, then recovered to around $83,000. Ethereum is also down around 6% in 24 hours.

Other spot crypto ETFs have not been spared. XRP ETFs saw notable outflows totaling $92.92 million, while Solana ETFs saw relatively minor withdrawals of $2.22 million, suggesting selective risk reduction rather than a rotation into alternative crypto assets. This trend indicates that institutions are largely withdrawing from their exposure to cryptocurrencies rather than reallocating within the sector.

Dollar liquidity tightens, putting pressure on Bitcoin prices

Among individual funds, BlackRock’s IBIT suffered the largest loss with $317.8 million in outflows, followed by Fidelity’s FBTC with $168 million. On the Ethereum side, BlackRock’s ETHA lost $54.9 million, while Fidelity’s FETH saw $59.2 million in outflows. This is in stark contrast to early January, when crypto ETFs were constantly attracting new capital.

A decline of about $300 billion in liquid dollars in recent weeks, mainly due to a $200 billion rise in TGA, the government could increase cash balances to fund spending in the event of a shutdown. $BTC this decline is not a surprise given the decline in dollar liquidity. pic.twitter.com/ctPjWd8188

-Arthur Hayes (@CryptoHayes) January 30, 2026

BitMEX founder Arthur Hayes linked the drop in Bitcoin price to a tightening liquidity of the US dollar. He noted that about $300 billion has been withdrawn from markets in recent weeks, largely due to a $200 billion increase in the U.S. Treasury General Account (TGA). Hayes suggested that the U.S. government could build up cash reserves in anticipation of a possible government shutdown.

While Hayes previously predicted a Bitcoin rally driven by Federal Reserve intervention in the face of the weakening Japanese yen, current market conditions have continued to deteriorate, weighing heavily on cryptocurrency prices and ETF flows.

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