Key Insights:
- Glassnode: US spot Bitcoin ETFs balances just logged the biggest drawdown of this cycle, down about 100,300 BTC since October.
- Total holdings now sit around 1.26 million BTC. SoSoValue shows roughly $1.6B left in January, extending monthly outflows that began in November 2025
- Bitcoin has fallen from roughly $126K (October peak) to about $67,349. With an average ETF cost basis near $83,980, investors are sitting on roughly 20% paper losses.
- Even so, the longer-term picture still looks firm: cumulative net inflows remain near $53B, down from a $63B peak—more consistent with a pullback than a full reversal.
Glassnode data howed US spot Bitcoin ETFs just logged their biggest balance pullback of this market cycle. The slide followed Bitcoin’s all-time high in early October, when positioning across the market looked stretched.
Bitcoin ETFs Hit Deepest Cycle Drawdown as Holdings Slip to 1.26M BTC
Glassnode data showed US spot Bitcoin ETF balances have shrunk by about 100,300 BTC since October. At the time of reporting, total holdings sat near 1.26 million BTC.
The drop pointed to steady net outflows. As investors pulled money from spot ETFs, the funds had to cut their Bitcoin positions.
SoSoValue data added more context. It showed roughly $1.6 billion left these products in January alone, extending a run of monthly outflows that started in November 2025.
Then the weakness carried into 2026. As prices kept slipping, traders grew more uneasy, and fear crept back into the market.
During Bitcoin’s run-up, many traders treated spot ETFs as a lasting tailwind. However, analysts said the same setup can work in reverse when investors redeem shares and funds have to sell.
In early February, Arthur Hayes said dealer hedging from big institutions is adding to the downward pressure on BTC.
Glassnode echoed that view in a recent post on X, where it said institutional de-risking is putting extra weight on the market and strengthening the wider risk-off mood.
The pressure is not just about money leaving Bitcoin ETFs. It is also showing up in growing unrealized losses.
Glassnode data put the average entry price for US spot Bitcoin ETF buyers at about $83,980 per coin.
Meanwhile, Bitcoin traded near $67,349 at the time of writing. That left this group sitting on paper losses of roughly 20%.
The selling pressure is not limited to Bitcoin ETFs. It is spreading across the wider digital asset fund market.
Essentially, investors pulled about $173 million from crypto funds last week. That made it four straight weeks of redemptions. Over that stretch, total withdrawals reached roughly $3.7 billion.
Bitcoin ETFs Still Show $53B Net Inflows
Still, not everyone is focused on the near-term gloom. Some analysts said the bigger trend remains intact.
Bloomberg senior ETF analyst Eric Balchunas pointed to the cumulative numbers. He said Bitcoin ETFs still hold roughly $53 billion in net inflows, even after the latest wave of withdrawals.
That figure is lower than the cycle peak of more than $63 billion in October 2025. Even so, he suggested the pullback has not erased the broader demand.
He added that his team set a more optimistic forecast than most peers. They expected Bitcoin ETFs to pull in about $5 billion to $15 billion in their first year.
From his view, context matters now. He said the market should weigh it against the roughly $8 billion in outflows that followed a 45% drop, and he argued Bitcoin’s link with Wall Street has been mostly positive overall.
Put together, the numbers pointed to a normal cycle reset, not a lasting break in the story. Investors appear to be cutting risk, not abandoning the product.
Even if the pressure lingers in the short term, the bigger signal still looks firm. The pace of institutional adoption since launch suggests Bitcoin’s place in Wall Street portfolios has not gone away.