Bitcoin ETFs Erase Nearly All Early-2026 Inflows as Risk Appetite Cools

Bitcoin exchange-traded funds (ETFs) saw a total $1.128 billion in outflows over three consecutive trading days, nearly reversing the net inflows recorded during the first two trading days of 2026.

Ethereum ETFs also extended a two-day run of net outflows, while several major altcoin ETFs continued to attract fresh inflows on January 8.

Bitcoin ETF Momentum Faces Sharp Reversal

According to data from SoSoValue, spot Bitcoin ETFs closed 2025 on a weak footing. In November, outflows reached $3.48 billion. This was the second-largest monthly outflow on record, narrowly trailing February’s $3.56 billion. Selling pressure eased in December, with net outflows moderating to $1.09 billion.

The new year initially brought renewed momentum. BTC ETFs attracted $471.14 million in net inflows on January 2, followed by an additional $697.25 million on January 5. This marked the largest single-day inflow in nearly three months. Combined, the two sessions generated $1.17 billion in inflows.

However, sentiment quickly reversed. ETFs recorded $243.24 million in outflows on January 6, followed by $486.08 million on January 7, the largest outflow since November 20.

On January 8, another $398.95 million exited the products. This brings the total outflows over three consecutive trading days to $1.128 billion.

“Risk appetite is clearly cooling as investors pull capital from BTC exposure,” Coin Bureau wrote.

BlackRock’s IBIT experienced $193.34 million in net outflows, while Fidelity’s fund saw $120.52 million leave. ETFs from Ark & 21Shares, and Grayscale also posted net outflows. In contrast, WisdomTree’s Bitcoin ETF registered modest inflows, while other products reported no flows.

Spot Ethereum ETFs echoed Bitcoin, notching $159.17 million in net outflows on Thursday. This follows a $98.45 million outflow on the previous day.

Meanwhile, new altcoin ETF offerings showed relative strength. XRP ETFs rebounded with $8.72 million in net inflows on Thursday after their first daily net outflow of $40.8 million on Wednesday. Solana ETFs maintained eight straight days of inflows, adding $13.64 million on Thursday.

Bitcoin Faces Critical Test as Markets Await US Court Decision on Tariffs

The slowdown in ETF demand coincides with recent price weakness in Bitcoin. The largest cryptocurrency has fallen 1.3% since Monday. It was trading at $90,360 at press time, representing modest gains of 0.38% over the past 24 hours.

Market analyst Ted Pillows noted that Bitcoin is currently trading in a no-trade zone. According to Pillows,

“Either Bitcoin needs to reclaim the $92,000 level, or it’ll drop towards the $88,000 zone, which also has a CME gap.”

In a separate post, the analyst stated that markets are likely to determine their direction today, with investor attention focused on a US court ruling regarding President Trump’s tariffs. While a ruling from the high court is not guaranteed, today has been designated as a “decision day” for the release of opinions, fueling speculation that the tariff case could be among those addressed.

Market participants on Polymarket have assigned a roughly 75% likelihood that the court rules against the tariffs. A decision in that direction could compel the Treasury to return an estimated $133 billion to $140 billion to importers.

This development may inject volatility into crypto, equity, and fixed-income markets. However, some analysts suggest the move could signal a bottom.

“If the Supreme Court cancels Trump’s tariffs today, Bitcoin and crypto likely just printed a local bottom. Tariffs gone means less uncertainty. Costs drop, earnings expectations improve, and markets can breathe again. That’s usually when risk assets start moving back up,” Master of Crypto remarked.

Overall, the sharp reversal in Bitcoin ETF flows highlights growing near-term caution among investors, even as select altcoin products continue to see steady demand. With markets awaiting clarity from a potential US court ruling on tariffs, near-term price action is likely to remain sensitive to macro developments.