Capital outflow from exchange-traded Bitcoin funds reached $817 million
The leader in capital outflows was BlackRock’s IBIT, the largest Bitcoin fund by assets under management. Investors withdrew $317.81 million from it. This exceeds the combined outflows from the next two largest funds — Fidelity’s FBTC ($168.05 million) and Grayscale’s GBTC ($119.44 million).
Aggressive share sell-offs followed Bitcoin’s exit from a multi-week trading range — the leading cryptocurrency fell to a nine-month low of $81,315, the lowest level since April 2025. Bitcoin has since recovered slightly and is now trading above $82,000.
Aurelie Barthere, chief analyst at Nansen, noted that Bitcoin has become more strongly correlated with U.S. equities. According to Barthere, Bitcoin’s decline also occurred amid the release of Microsoft’s financial results for the fourth quarter of 2025 and its overly cautious outlook for 2026.
Tim Sun, senior researcher at HashKey Group, believes that the withdrawal of funds from Bitcoin ETFs was also influenced by the possibility of Kevin Warsh replacing Jerome Powell as Chair of the U.S. Federal Reserve. Warsh supports a more accommodative Fed policy, namely money printing and lower interest rates on loans. As a result, investors began shifting from highly volatile assets to traditional assets such as gold to protect their savings from inflation. This factor intensified outflows from Bitcoin ETFs, which may slow the recovery of the leading cryptocurrency, Tim Sun suggested.
Earlier, analysts at SoSoValue reported that at the beginning of January, spot exchange-traded funds (ETFs) for Bitcoin and Ether lost $681 million. The reason was also economic and political uncertainty.
See also: "More than one third of U.S. merchants accept cryptocurrency payments — survey"
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