Crypto exchange-traded funds linked to Bitcoin and Ether recorded combined withdrawals of $1.82bn over a five-day period, marking one of the largest short-term outflows on record.
The withdrawals occurred between January 26 and January 31, 2026, during a broader decline across digital asset markets.
Bitcoin-focused ETFs accounted for the majority of the outflows, with $1.49bn leaving funds over the period.
Ether ETFs also faced heavy selling pressure, recording net withdrawals of approximately $327m.
Major issuers were affected, including BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC.
Market data showed Grayscale’s GBTC experienced some of the sharpest single-day redemptions during the sell-off.
The ETF outflows coincided with falling cryptocurrency prices across spot markets.
Bitcoin declined by roughly 6.55% during the same five-day window.
Ether recorded a steeper drop, falling by around 8.99% over the period.
Analysts linked the withdrawals to heightened investor caution amid global macroeconomic uncertainty.
Investors were seen reducing exposure to risk assets as volatility returned to financial markets.
Demand for traditional safe havens increased, with gold and silver prices climbing to fresh highs.
Capital rotation into precious metals accelerated as crypto prices weakened.
ETF analyst Eric Balchunas suggested the sell-off may reflect short-term sentiment rather than a lasting shift.
“This looks like a very short-term reaction driven by market nerves rather than a structural breakdown,”
Eric Balchunas said.
Some market observers compared the episode to previous drawdowns seen during the 2022 crypto crash.
Others pointed to similarities with the market corrections recorded in early 2025.
Regulatory uncertainty also weighed on investor confidence during the period.
The appointment of Kevin Warsh to lead the US Federal Reserve added to institutional caution, analysts said.
Funds that entered crypto ETFs during earlier rallies were seen locking in profits.
Analysts noted that weaker hands tended to exit positions during periods of sharp volatility.
Longer-term investors appeared to be waiting for clearer signs of price stabilisation.