Why did investors withdraw nearly $1.4 billion from Bitcoin ETFs in just four days?

Source: Yellow Original Title: Why did investors withdraw nearly $1.4 billion from Bitcoin ETFs in just four days?

Original Link: The spot (ETF) funds for Bitcoin closed their first full week of trading in 2026 with $681 million in net outflows after four consecutive days of withdrawals erased initial gains of nearly $1.17 billion.

What happened: weekly ETF redemptions

The investment products had started the year with momentum, recording $471.1 million in net deposits on January 2 and $697.2 million on January 5.

But that momentum disappeared between January 6 and January 9, when combined net outflows reached $1.378 billion.

Fidelity FBTC led the withdrawals with $481.32 million in redemptions, followed by Grayscale GBTC with $171.79 million.

Ark/21Shares ARKB lost $45.34 million, while Grayscale’s Bitcoin (BTC), Bitwise BITB, and VanEck HODL recorded losses between $3 million and $22 million.

BlackRock IBIT broke the trend with $25.86 million in net inflows, bringing its total assets under management to $62.41 billion and total net assets to $69.88 billion. Invesco BTCO, Franklin Templeton EZBC, Valkyrie BRRR, and WisdomTree BTCW also attracted between $1 million and $15 million.

Why it matters: institutional sentiment shift

The weekly performance reflects broader institutional caution, as Bitcoin failed to sustain a recovery above $94,000 amid decreasing expectations of interest rate cuts.

Institutional investors appeared to seek stability after the price rejection, and the four-day streak of withdrawals suggests a reassessment of risk appetite amid uncertainty about monetary policy.

Bitcoin spot ETFs now hold $116.86 billion in total net assets, representing 6.48% of Bitcoin’s market capitalization, with accumulated net inflows of $56.40 billion.

The Ethereum spot ETFs mirrored the pattern. Initial deposits of $282.87 million between January 5 and 6 gave way to three consecutive days of heavy withdrawals, resulting in a net outflow of $68.57 million and leaving total net assets at $18.70 billion.

Meanwhile, JPMorgan analysts noted that Bitcoin stabilization and balanced flows in ETFs suggest that investors’ risk reduction may be nearing its end, with market patterns reflecting activity in both directions rather than panic or recovery.

Analysts expect that several factors could drive the digital asset higher next year, including possible interest rate cuts, increased institutional adoption, and expansion of government reserves.