Cryptocurrency ETF outflows rise to nearly $1 billion as volatility rises

US-listed Bitcoin and Ethereum ETFs posted one of the worst days of aggregate outflow of 2026, as falling prices and rising volatility prompted institutional investors to cut exposure. Nearly $1 billion exited cryptocurrency ETFs in a single session, signaling a sharp shift in institutional sentiment toward digital assets.

According to data from sosophalio, Bitcoin ETFs alone saw outflows of $817.9 million on January 29, representing the largest single-day withdrawal since November 20. Ethereum ETFs followed with outflows of $155.6 million. The sell-off coincided with a broader decline in the cryptocurrency market, with Bitcoin falling below $85,000, briefly falling to $81,000, and later rebounding to around $83,000. The price of Ethereum also fell by about 6% within 24 hours.

Other crypto ETFs were not bailed out. 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 pattern suggests that institutions are broadly withdrawing exposure to cryptocurrencies rather than reallocating it within the sector.

Tightening dollar liquidity, putting pressure on Bitcoin prices

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

The nearly $300 billion drop in cash over the past few weeks is mostly driven by the $200 billion rise in TGA, so the government can raise cash balances to fund spending in the event of a lockdown. $ Bitcoin The decline was not surprising given the decline in dollar liquidity. pic.twitter.com/ctPjWd8188

– Arthur Hayes (@CryptoHayes) January 30, 2026

BitMEX founder Arthur Hayes linked the decline in Bitcoin prices to tightening liquidity in the US dollar. He noted that nearly $300 billion has been drained from the markets in recent weeks, largely due to a $200 billion increase in the US Treasury General Account (TGA). Hayes noted that the US government may be building cash reserves in preparation for a potential government shutdown.

While Hayes previously predicted a Bitcoin rally driven by Fed intervention in a weak Japanese yen, current market conditions have continued to deteriorate, significantly impacting cryptocurrency prices and ETF flows.

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