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US Spot Bitcoin ETFs Post $681 Million Weekly Outflows as Rate-Cut Odds Drop

US Spot Bitcoin ETFs Reversed Early Inflows, Losing $681 Million as Macro Uncertainty Hit Risk Appetite

Written By : Kelvin Munene
Reviewed By : Atchutanna Subodh

Spot Bitcoin exchange-traded funds opened 2026 with a sharp change in flows. U.S.-listed spot Bitcoin ETFs posted a combined $681 million net outflow in the first full trading week of the year.

The funds started with inflows, then reversed as investors reduced exposure to risk assets. SoSoValue data showed four consecutive outflow days from Tuesday through Friday. Those withdrawals outweighed inflows recorded earlier in the week.

US Spot Bitcoin ETFs Flip From Inflows to Redemptions

The swing followed strong creations at the start of January. Spot Bitcoin ETFs drew $471.1 million of net inflows on Jan. 2. They added about $697.2 million on January 5, before redemptions took over.

Outflows then increased midweek. Data showed the largest daily redemption on Wednesday at about $486 million. Funds also saw net withdrawals on Thursday and Friday. Spot Ethereum ETFs also ended the week with net outflows, while tracking sites put their net assets near $18.7 billion.

Rate-Cut Repricing and Geopolitics Push a Risk-Off Stance

Market participants tied the outflows to changing expectations for US monetary policy and broader risk. Kronos Research chief investment officer Vincent Liu said traders turned cautious as markets priced fewer near-term rate cuts. He also pointed to rising geopolitical risk.

Investors also focused on upcoming US inflation data and Federal Reserve guidance for signals on easing. Some market pricing puts the chance of a near-term rate cut in the low teens. Traders also watched tariff-related developments, alongside December employment data.

Meanwhile, labor data pointed to softer demand for workers. The Labor Department’s JOLTS report showed job openings near 7.15 million in November 2025. Openings also ran about 885,000 below the year-ago level. The openings-to-unemployed ratio fell to 0.9.

Also Read: Bitcoin Price Trades Around $92,700 While ETF News Drives Crypto Prices

Bitcoin Open Interest Cools as Traders Wait for Direction

Derivatives positioning suggested lower leverage. CryptoQuant data indicates Bitcoin’s open interest fell to levels last seen in 2022. The move signaled reduced leveraged exposure across futures markets.

Lower leverage can reduce liquidation-driven price swings, even when headlines turn negative. Consequently, Bitcoin can trade in a narrower band while spot buyers and sellers set the pace. Analysts have pointed to $92,000 as a level to regain, while they track downside risk toward $88,000 and nearby support.

Several market analysts also flagged Bitcoin’s ability to hold above the $85,000 area during the flow pullback. Some analysts said a measured move toward $100,000 could follow if macro signals stabilize and demand returns.

Institutional product development continued despite the outflows. Morgan Stanley filed with the US SEC to launch two spot crypto ETFs, one tied to Bitcoin and another tied to Solana. Bank of America also began allowing advisers in its wealth units to recommend exposure to several Bitcoin ETFs.

Investors are expected to track CPI, Fed commentary, and daily ETF flow totals. They will also watch open interest for stabilization. They will track whether Bitcoin reclaims $92,000 as risk sentiment resets over the next trading sessions this month.

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