Investors have recently withdrawn approximately $1.82 billion from US-based spot Bitcoin and Ether exchange-traded funds (ETFs) amid a decline in market sentiment, following a rally in precious metals. Data from Farside highlights that from Monday to Friday, US-based spot Bitcoin ETFs experienced a significant drop of $1.49 billion, while spot Ether ETFs faced outflows totaling $327.10 million. This trend coincides with a continued decline in the spot prices of both cryptocurrencies, despite earlier indications of a possible recovery.
Over the past week, Bitcoin and Ether have seen declines of 6.55% and 8.99%, trading at $83,400 and $2,685 respectively, according to CoinMarketCap. The previous surge in Bitcoin’s price—largely influenced by speculation surrounding the US CLARITY Act—was fleeting. On January 14, Bitcoin ETFs recorded their largest inflow for 2026 with $840.6 million, just before the Crypto Fear & Greed Index highlighted a significant uptick in market sentiment, reaching a score of 61 classified as “Greed.”
ETF analysts observe that flows into spot crypto ETFs can serve as an indicator of retail investor sentiment, which is often linked to the potential near-term pricing direction of these assets. Eric Balchunas, an ETF analyst, characterized the negative sentiment surrounding Bitcoin’s recent performance relative to gold and silver as “very short-sighted.” In an X post, he contrasted Bitcoin’s past performance, where it significantly outperformed other assets during 2023 and 2024, asserting that many seem to have overlooked this prior strength.
Balchunas further explained that the narrative surrounding the institutional adoption of Bitcoin had been rapidly priced in, suggesting that the cryptocurrency needed to stabilize to allow for a more accurate assessment of its value and the accompanying narrative to materialize. His comments came in the wake of gold and silver reaching unprecedented heights this week, with gold soaring to $5,608 and silver hitting $121. However, Friday’s trading revealed a stark reversal, with gold dropping 8% to $4,887 and silver plummeting around 27% to $84.
In a reflection of the market dynamics, Matt Hougan, chief investment officer of Bitwise, noted on January 15 that should demand for Bitcoin ETFs maintain its momentum over the long term, the price of Bitcoin could experience a substantial upward shift.
