Crypto ETFs Lose $1.73B in Largest Weekly Outflows Since November
Bitcoin, Ethereum, and XRP investment products saw $1.73 billion in withdrawals last week, marking the largest exodus since mid-November 2025.
Institutional investors withdrew $1.73 billion from crypto investment products last week, the largest single-week outflow since November 2025.
What Happened
Crypto investment products experienced a sharp reversal in sentiment, recording $1.73 billion in net outflows for the week ending January 24. This marks the largest weekly withdrawal since mid-November 2025.
Bitcoin led the decline with approximately $1.09 billion in outflows, followed by Ethereum at $630 million. XRP also posted $18.2 million in outflows, following the broader market trend.
The selloff coincides with BTC dropping below $90,000 after reaching $97,000 on January 15. Bitcoin traded around $88,000 on January 26, having erased most of its monthly gains.
Why It Matters
The outflows reflect deepening bearish sentiment across the crypto market. The crypto fear and greed index dropped to 29, firmly in fear territory.
Rising uncertainty around a potential US government shutdown, combined with broader risk-off sentiment, triggered over $1 billion in crypto liquidations. Macro headwinds continue to weigh on digital assets as investors reassess risk exposure.
This pullback follows a strong start to 2026, when Bitcoin briefly reclaimed $95,000. The sudden reversal suggests institutions are taking profits amid unclear short-term catalysts.
What to Watch
Key indicators to monitor include whether outflows persist into the coming week and if Bitcoin can defend the $87,000 support level. The US Senate Banking Committee has postponed its scheduled markup of a crypto regulatory bill, adding to regulatory uncertainty.
Meanwhile, the UK's Financial Conduct Authority moved into the final stage of consultations on proposed crypto regulations, potentially providing a clearer framework for European investors.
Key Takeaways
This is a developing situation. The scale of outflows suggests a meaningful shift in institutional positioning, but whether this represents tactical rebalancing or a longer-term trend remains to be seen.
