Key Insights:
- Crypto ETF products recorded $1.73 billion in outflows during the week of January 19-23, marking the largest exodus since mid-November 2025.
- The reversal followed a record $2.17 billion inflow week, creating a net swing of nearly $4 billion in investor sentiment across two consecutive weeks.
- Solana ETF products bucked the trend, recording $17.1 million in inflows, while Bitcoin and Ethereum led the retreat.
Crypto ETF products hemorrhaged $1.73 billion in the week ending January 23, according to CoinShares’ latest weekly report. The outflows represented the sharpest reversal since mid-November 2025, with US-based products absorbing nearly $1.8 billion of the damage.
BlackRock iShares led provider-level outflows at $951 million, followed by Grayscale at $270 million and Fidelity at $469 million. The crypto market downturn marked a complete reversal of sentiment from the prior week.
Between January 12-16, products attracted $2.17 billion, the largest weekly inflow since October 10, 2025.
Bitcoin and Ethereum Led the Exodus in Crypto ETF Products
Bitcoin products bled $1.09 billion during the week, matching the largest Bitcoin-specific outflow since mid-November 2025. Short-bitcoin products captured minor inflows of $500,000, suggesting some investors positioned for further downside.
Ethereum products shed $630 million, indicating broad-based negative sentiment across major assets. XRP products lost $18.2 million, while multi-asset products recorded $15.5 million in outflows.
Yet Solana ETF products defied the trend, attracting $17.1 million in inflows during the week. The figure positioned Solana as the only major asset to capture positive flows amid widespread redemptions.
The resilience continues to track with Solana’s performance from the prior week. Between January 12-16, Solana ETF products pulled $45.5 million in inflows. Other altcoins saw mixed results. BNB-focused crypto ETF products captured $4.6 million, while Chainlink products added $3.8 million. Sui products lost $6 million.
Regional Sentiment Split Between the US and Europe
Switzerland, Germany, and Canada viewed the crypto market weakness as a buying opportunity. Swiss products added $32.5 million, German products captured $19.1 million, and Canadian products attracted $33.5 million.
The European inflows failed to offset US-driven outflows. Sweden and the Netherlands followed the US with minor redemptions of $11.1 million and $4.4 million, respectively.
The geographic split mirrored patterns from the prior bullish week. Between January 12-16, US crypto ETF products accounted for $2.05 billion in inflows, while Germany ($63.9 million), Switzerland ($41.6 million), and Canada ($12.3 million) accounted for smaller amounts.
Debasement Trade Disappointment Fueled Selling
CoinShares attributed the outflows to investor frustration that digital assets failed to participate in the debasement trade. Dwindling expectations for interest rate cuts and negative price momentum compounded the bearish sentiment.
The shift occurred rapidly. On Friday, January 16, sentiment turned negative with $378 million in outflows following diplomatic escalation over Greenland and renewed tariff threats.
Additionally, speculation that Kevin Hassett would remain in his current role rather than become Fed Chair also weighed on markets. By the following week, selling accelerated, leading the crypto market to record net outflows across most crypto ETF products and providers.
Net Crypto ETF Flows Remained Positive Despite Reversal
Despite the dramatic swing, the two-week period produced net inflows of $440 million. The $2.17 billion inflow week of January 12-16 absorbed most of the subsequent $1.73 billion outflow week.
Bitcoin captured $1.55 billion during the bullish week but surrendered $1.09 billion the following week, leaving net inflows of $460 million across both periods. Ethereum attracted $496 million between January 12-16 before losing $630 million in the subsequent week, resulting in net outflows of $134 million.
Solana crypto ETF maintained positive flows across both weeks. The $45.5 million captured in the bullish week, combined with $17.1 million from the bearish week, produced $62.6 million in net inflows.
The rapid sentiment reversal suggested investors remained sensitive to macro developments. Interest rate expectations, geopolitical tensions, and policy uncertainty drove allocation decisions.
It aligns with the price action seen over the past few weeks. Macro headwinds pressure Bitcoin amid a market that quickly alternates between risk-on and risk-off sentiment.