After a short-lived rebound at the start of January, U.S. spot Bitcoin and Ether exchange-traded funds recorded significant redemptions, extending a cautious investor stance that has persisted since the market reset in October.
U.S.-listed spot Bitcoin and Ether ETFs have seen more than $1 billion in combined outflows since Tuesday, marking an early pullback in 2026 following modest inflows earlier in the month.
Data from SoSoValue shows that spot Bitcoin ETFs recorded $1.13 billion in outflows between Tuesday and Thursday, effectively wiping out $1.17 billion in inflows posted on January 2 and the following Monday. Spot Ether ETFs followed a similar pattern, with roughly $258 million exiting since Wednesday after modest early-January inflows.
This reversal erased gains accumulated at the beginning of the year and highlights renewed investor caution. The data suggests that initial inflows lacked conviction, with market participants reducing exposure as sentiment weakened.
The latest outflows also reflect a broader cautious tone that carried over from late 2025. CoinShares reported on December 29 that crypto exchange-traded products saw $446 million in outflows during the Christmas period, underscoring fragile year-end sentiment following earlier market volatility.
ETF momentum fades after mid-2025 peak
Monthly flow data from SoSoValue indicates that spot Bitcoin and Ether ETFs experienced their strongest accumulation phase in July 2025. During that month, Bitcoin ETFs attracted more than $6 billion in inflows, while Ether ETFs exceeded $5 billion.
Since then, momentum has weakened. Bitcoin ETFs recorded $750 million in outflows in August, recovered modestly in September and October, and then suffered their second-largest outflow month of 2025 in November, when $3.48 billion was withdrawn.
Ether ETFs followed a similar trend, though on a smaller scale. Inflows accelerated through mid-2025 before turning negative in November and December.
This shift followed October’s sharp market correction, when a $20 billion liquidation event triggered widespread deleveraging across crypto markets. While analysts characterized the move as controlled rather than systemic, ETF flow data suggests investors reassessed risk exposure in the aftermath, contributing to heavier redemptions toward year-end.
Altcoin ETFs attract steadier interest
Spot ETFs tied to altcoins such as XRP and Solana recorded smaller but more consistent inflows. While volumes were far lower than those seen in Bitcoin and Ether funds, these products avoided monthly outflows altogether.
XRP and Solana ETFs have attracted steady inflows since their launch in late 2025 and into January, even as BTC and ETH ETFs faced significant redemptions. This trend suggests that some investors are rotating into more targeted crypto exposure rather than exiting the market entirely.
