Bitcoin ETFs are bleeding as the market waits for a key rate rule
Bitcoin exchange-traded funds (ETFs) saw a total of $1.128 billion in spending over three consecutive trading days, nearly reversing the net inflows recorded in the first two trading days of 2026.
Ethereum ETFs also extended their two-day net inflows, while several major altcoin ETFs continued to attract new inflows on January 8.
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Bitcoin ETF momentum is facing a sharp reversal
According to data from SoSoValue, spot Bitcoin ETF 2025 closed on a weak leg. In November, outflows reached $3.48 billion. This was the second-biggest monthly gain on record, just shy of February's $3.56 billion. Selling pressure eased in December, with net outflows moving to $1.09 billion.
The beginning of a new year brings new motivation. The BTC ETF attracted net inflows of $471.14 million on January 2, followed by an additional $697.25 million on January 5. This marked the largest one-day flow in three months. Combined, the two sessions brought in $1.17 billion in revenue.
However, the mood changed quickly. ETFs recorded outflows of $243.24 million on January 6, followed by $486.08 million on January 7, the largest outflow since November 20.
On January 8, it released another $398.95 million worth of products. This brings the total foreign inflows in three consecutive trading days to $1.128 billion.
“As investors withdraw capital from BTC exposure, risk appetite is clearly slowing,” the Coin Bureau wrote.
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BlackRock's IBIT experienced net inflows of $193.34 million, while Fidelity's fund saw inflows of $120.52 million. ETFs from Arch and 21Share and Grayscale also posted net outflows. In contrast, the WisdomTrue Bitcoin ETF recorded modest inflows while other products reported no inflows.
Spot Ethereum ETFs echoed Bitcoin, seeing net inflows of $159.17 million on Thursday. This followed the previous day's expenditure of $98.45 million.
Meanwhile, new altcoin ETF offerings have shown relative strength. The XRP ETF rebounded with a net inflow of $8.72 million on Thursday after an initial daily net inflow of $40.8 million on Wednesday. Solana ETFs maintained eight straight inflows, adding $13.64 million on Thursday.
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Bitcoin faces a critical challenge as markets await a US court ruling on tariffs.
The slowdown in ETF demand coincides with recent Bitcoin price weakness. The largest cryptocurrency has fallen 1.3% since Monday. At press time, it was trading at $90,360, representing modest gains of 0.38% over the past 24 hours.
Market analyst Ted Truss has suggested that Bitcoin is currently trading in a no-trade zone. As the pillow says,
“Either Bitcoin has to return to the $92,000 level, or it will drop to the $88,000 zone, which has a CME gap.”
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The analyst said in a note that markets may decide their direction today as investors focus on the US court's decision on President Trump's tariffs. While the Supreme Court's verdict is not guaranteed, today's supposed “decision day” has led to speculation that the tariff issue could be among those raised.
Market participants at Polymarket have allocated approximately 75% of the court's decision on tariffs. A decision in that direction could force the Treasury to return an estimated $133 billion to $140 billion to importers.
This development could inject volatility into the crypto, equity and fixed income markets. However, some analysts suggest that the move could signal a downside.
“If the Supreme Court overturns Trump's tariffs today, Bitcoin and crypto will likely just seal the bottom of the environment. Tariffs gone mean less uncertainty. Spending falls, earnings expectations improve, and markets can breathe again. That's usually when risk assets start to move higher,” opined the Crypto Master.
Overall, the sharp reversal in Bitcoin ETF flows reflects recent growing caution among investors, even as select altcoin products continue to see steady demand. As markets await clarity from a possible US court ruling on tariffs, recent price action measures may be vulnerable to macro developments.
