Crypto ETF outflows surge to nearly $1 billion as volatility surges

U.S.-listed spot Bitcoin and Ethereum ETFs recorded one of the worst combined outflow days of 2026 as falling prices and increased volatility prompted institutional investors to reduce their exposure. Nearly $1 billion was lost from cryptocurrency ETFs in a single session, signaling a sharp shift in institutional sentiment toward digital assets.

Bitcoin ETFs alone saw outflows of $817.9 million on January 29, marking the largest single-day withdrawal since November 20, according to data from SoSoValue. The Ethereum ETF experienced an outflow of $155.6 million. The massive sell-off coincided with a broader cryptocurrency market downturn that saw Bitcoin fall below $85,000, briefly hit $81,000, and later recover to around $83,000. Ethereum also fell by about 6% within 24 hours.

Other spot cryptocurrency ETFs were no exception. While the This pattern suggests that institutions are broadly withdrawing their cryptocurrency exposure rather than reallocating within the sector.

Strengthening dollar liquidity puts pressure on Bitcoin price.

Among private funds, BlackRock’s IBIT suffered the greatest loss with an outflow of $317.8 million, followed by Fidelity’s FBTC with $168 million. On the Ethereum side, BlackRock’s ETHA lost $54.9 million, while Fidelity’s FETH recorded an outflow of $59.2 million. This is a sharp contrast to early January, when cryptocurrency ETFs continued to attract new capital.

The $200 billion rise in TGA over the past few weeks has led to a drop in $liq of about $300 billion, which could allow the government to increase its cash balance to fund spending in the event of a lockdown. $BTC This is not surprising considering the decline in dollar liquidity. pic.twitter.com/ctPjWd8188

— Arthur Hayes (@CryptoHayes) January 30, 2026

BitMEX founder Arthur Hayes linked Bitcoin’s price decline to a tightening of US dollar liquidity. He noted that about $300 billion has left the market in recent weeks, largely due to a $200 billion increase in the U.S. Treasury’s general account (TGA). Hayes suggested the U.S. government might build cash reserves in preparation for a potential government shutdown.

Hayes previously predicted a Bitcoin rally due to the Federal Reserve’s intervention in response to Japan’s yen weakness, but current market conditions continue to deteriorate, weighing heavily on cryptocurrency prices and ETF flows.

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