Since Tuesday, the United States spot Bitcoin and Ether exchange-traded funds have lost more than $1 billion, wiping off gains made in early 2026.
According to SoSoValue data, spot Bitcoin ETFs lost almost $1.13 billion between Tuesday and Thursday, offsetting $1.17 billion that came in on January 2 and Monday. Spot Ether ETFs followed the same pattern, with $258 million leaving since Wednesday, following small inflows.
This sudden change shows how weak investor sentiment was at the start of the year. Market experts say the pullback is a sign of caution at the end of the year, following CoinShares’ revelation on December 29 that $446 million in ETPs left the market over Christmas due to ongoing volatility. Investors seem to be cutting back on their positions as hope fades swiftly.
Trends After the Peak Flow
In July 2025, both Bitcoin and Ether ETFs reached their highest levels of accumulation. Bitcoin funds raised more than $6 billion a month, while Ether funds raised more than $5 billion.
After that, flows went down: Bitcoin ETFs lost $750 million in August, then partially recovered in September and October, and then lost $3.48 billion in November, which was the second-worst month of 2025.
Ether followed suit, speeding up during the summer before becoming negative in November and December. The $20 billion liquidation event in October 2025 contributed to deleveraging, but analysts said it was controlled rather than systemic.
After the correction, more redemptions occurred, slowing the pace from the middle of the year. The ETF data shows that the market as a whole has adjusted after that shakeout.
Altcoin ETFs Stay the Same
Spot XRP and Solana ETFs have steady, lower inflows, without any months in which they lost money, unlike big ETFs. These funds kept getting money since they started in late 2025, even while people were cashing out BTC and ETH.
The pattern suggests that investors are moving towards focused cryptocurrency exposure instead of leaving the whole class.
This difference implies that selected techniques continue to work even during large outflows. Bitcoin and Ether account for most of the volume, but the stability of altcoins offsets the stresses on major funds. Changes like these could indicate that portfolio diversity is improving in rough times.
Investors Are Still Cautious
The early 2026 reversal shows that people are more cautious after the ups and downs of 2025. There are no particular statements from analysts in flow reports, but the patterns match up with taking profits after volatility.
As withdrawals wipe out earlier gains, people are wondering whether rotation will keep cryptocurrency gains or if the mood will get worse.
Stakeholders keep an eye on stabilisation, with ETF measures being important indicators of mood. Year-to-date flows are now negative across major currencies, testing their strength amid economic headwinds.
