Roughly $400 million exits spot Bitcoin ETFs as funds rebalance amid subdued risk appetite

NEW YORK | January 10, 2026 — Spot Bitcoin exchange-traded funds recorded another day of net redemptions on Monday, extending a negative flow streak that has increasingly shaped near-term price action across crypto markets.

Data reviewed by this publication shows that roughly $400 million exited U.S.-listed spot Bitcoin ETFs during the session, as institutional investors adjusted positioning following recent volatility and uneven macro signals.

The continued outflows added pressure to Bitcoin prices during Asian and European trading hours, with spillover effects seen across major tokens and crypto-linked derivatives.

Market participants said the ETF withdrawals reflected portfolio rebalancing rather than forced liquidation, but noted that the scale and persistence of redemptions continued to weigh on sentiment.

Bitcoin traded in a narrow range for much of the day, though volumes thinned during periods of heavy ETF selling, according to traders active on major exchanges.

Ethereum and other large-cap tokens moved largely in tandem with Bitcoin, reinforcing the role of ETF-linked flows as a broader market driver.

In Europe, crypto desks reported lighter institutional participation during the London session, with several funds opting to reduce directional exposure rather than add risk.

Derivatives markets reflected the more defensive tone. Traders in Singapore noted reduced leverage across Bitcoin perpetual contracts, with some short-term positions trimmed ahead of upcoming macro events.

Options desks in Asia reported steady demand for near-dated downside protection, though no sharp spike in implied volatility was observed.

In the United States, several market participants pointed to the cumulative effect of recent ETF flows, saying the vehicles were increasingly acting as a barometer for institutional conviction.

“Flows are doing most of the talking right now,” said one U.S.-based trader, adding that price discovery had become more reactive to ETF subscriptions and redemptions than to on-chain signals.

Industry sources noted that some long-only funds had shifted allocations toward cash or traditional risk assets, citing uncertainty around near-term policy signals and global growth trends.

At the same time, crypto-native firms appeared less active in absorbing ETF-related supply, a contrast to earlier periods when dip-buying by proprietary desks helped stabilize prices.

Asia-based traders said regional participation remained selective, with family offices and private funds showing limited appetite to increase exposure amid choppy market conditions.

While no regulatory announcements were made during the session, several desks said ongoing scrutiny of crypto markets in multiple jurisdictions continued to influence risk management decisions.

Liquidity conditions remained orderly despite the outflows, with no reports of exchange disruptions or settlement issues.

However, traders cautioned that sustained ETF redemptions could amplify price moves during periods of thinner participation, particularly outside U.S. trading hours.

By the close of the European session, crypto markets remained subdued, with participants largely awaiting clearer directional cues.

Market participants said attention would remain focused on ETF flow data in coming sessions, given its growing influence on short-term positioning.

For now, the day’s activity underscored the role of institutional vehicles in shaping market structure, even in the absence of headline-driven catalysts.

Disclaimer: Crypto assets are volatile and involve risk.
This content is for informational purposes only.

Global Markets Desk | DECODE THE CRYPTO
covers global crypto markets, regulation, and institutional trends.