Bitcoin and Ether ETFs See Heavy Outflows Amid Volatile Start to 2026

The U.S. digital asset ETF market experienced significant redemptions in the first full trading week of 2026, reversing early-year gains as investors pulled back amid volatile price action. Spot Bitcoin ETFs alone recorded around $250 million in outflows on Friday, January 9, culminating in a weekly net withdrawal of $681 million. This follows a $1.16 billion inflow during the first two trading days of the year, which analysts now describe as a “fragile rebound” rather than a sustainable market shift.

BlackRock’s iShares Bitcoin Trust (IBIT) was the most affected, seeing $252 million leave the fund, while Fidelity’s FBTC remained an exception, attracting $7.9 million in new capital despite the broader sell-off.

Market observers attribute the shift in flows to both profit-taking and rising macroeconomic uncertainty. Analysts at LVRG Research and SoSoValue noted that after Bitcoin briefly tested the $95,000 level earlier in the week, “many institutional participants chose to rebalance their portfolios ahead of the upcoming U.S. Consumer Price Index release and renewed Federal Reserve guidance.” Ether ETFs mirrored this trend, posting nearly $69 million in weekly redemptions, bringing total assets across Ethereum-focused ETFs to approximately $18.7 billion.

In contrast, newer spot ETFs focused on altcoins demonstrated resilience. XRP ETFs reached a record weekly trading volume of $219 million, drawing $38.1 million in net inflows for the week ending January 9. Solana ETFs also posted positive flows of $41.1 million during the same period. Analysts suggest this divergence reflects a rotation by some institutional investors toward “targeted exposure” assets, potentially offering higher upside than the more established Bitcoin market.

As 2026 unfolds, the performance of altcoin-specific ETFs may serve as a barometer for institutional appetite for diversification beyond Bitcoin and Ether.