Bitcoin ETFs Kickstart Week With $394 Million Outflow: What’s Ahead?

The new week has started off pretty weak for the crypto community, and the U.S. spot Bitcoin ETFs have also opened the week on a very cautious note, as no capital was injected into the Bitcoin funds during their last trading session.

According to data provided by SosoValue, the Bitcoin ETFs recorded a massive outflow of $394.68 million on January 16, even as Bitcoin’s price held firm around $95,550 at the time.

Bitcoin retreats as investor interest weakens 

While Bitcoin had earlier appeared steady, its price has now retreated below that level, suggesting that the pullback seen among the ETFs has now extended to the asset’s trading price as momentum continues to decline.

Notably, the pullback seen across the Bitcoin ETF ecosystem suggests increasing short-term profit-taking, which has led the asset’s price into deep red territory.

The caution seen among the Bitcoin funds may not be viewed as a loss of confidence in the longer-term trajectory, as cumulative net inflows still stand at a massive $57.82 billion despite the single-day outflow.

Apparently, this further highlights the sustained institutional interest since spot Bitcoin ETFs launched in January 2024. While the funds have continued to show long-term conviction in Bitcoin, they now hold about 6.53% of Bitcoin’s circulating supply. This shows how deeply ETFs are now embedded in the market’s structure, bridging the gap between the traditional market and the Bitcoin ecosystem.

BlackRock maintains dominance 

Despite the poor performance seen during the last trading session, BlackRock’s Bitcoin ETF has continued to attract capital, breaking the negative trend with about $15.09 million in daily inflow.

Fidelity’s FBTC, on the other hand, saw the largest withdrawal of the day, with $205.22 million in outflows. Other funds also logged notable outflows, offsetting the modest inflow recorded by BlackRock.