Bitcoin ETFs Bleed $1.62B in 4 Days — Are Hedge Funds Dumping BTC?

Bitcoin spot exchange-traded funds have skilled steep outflows over 4 buying and selling days, dropping a mixed whole of $1.62 billion.

The exit has raised a query on whether or not hedge funds are withdrawing their Bitcoin publicity because the market circumstances change.

The withdrawals happen as Bitcoin fails to regain momentum round important worth factors, whereas a once-popular institutional arbitrage technique steadily loses its attraction.

BlackRock’s IBIT Leads Bitcoin ETF Outflows as BTC Slips Under $90K

As of January 22, 2026, US-listed spot Bitcoin ETFs recorded internet each day outflows of $32.11 million, extending a streak of redemptions that peaked at $708.71 million on January 21, following $483.38 million on January 20, Sosovalue information reveals.

Within the final one week, internet outflows amounted to 1.22 billion.

Buying and selling exercise stayed robust on January 22, with Bitcoin spot ETFs recording $3.30 billion in quantity, whilst belongings underneath administration dipped to $115.99 billion, about 6.49% of Bitcoin’s market cap.

BlackRock’s iShares Bitcoin Belief led each day outflows, with $22.35 million redeemed, equal to roughly 249.5 BTC.

Regardless of the withdrawal, IBIT stays the dominant product, holding $69.84 billion in belongings and practically 4% of the Bitcoin provide represented in ETFs.

Constancy’s FBTC adopted with $9.76 million in outflows, whereas Grayscale’s GBTC reported flat each day flows however stays deeply unfavorable total, with $25.58 billion in cumulative internet outflows as buyers proceed rotating away from its increased 1.5% payment.

Different issuers, together with Bitwise, Ark and 21Shares, VanEck, Invesco, Valkyrie, Franklin, and WisdomTree, recorded largely unchanged flows, displaying a pause moderately than broad panic promoting.

The ETF pullback has unfolded alongside weak spot in Bitcoin’s worth.

BTC was buying and selling round $89,982 on January 22, down 1.3% on the day and practically 5% over the previous week, after briefly dipping to $88,600.

Buying and selling quantity has additionally cooled, falling practically 28% to $37.77 billion, an indication that market participation is thinning as costs consolidate under $90,000.

Compressed Yields Set off Hedge Fund Exit From Bitcoin ETFs

Market observers level to hedge fund positioning as a key driver behind the ETF outflows.

Amberdata reveals that yields on the Bitcoin foundation commerce, a method that buys spot Bitcoin by way of ETFs whereas promoting futures to seize worth spreads, have dropped under 5%, down from round 17% a 12 months in the past.

As returns compress and method the yield obtainable on short-dated US Treasuries, fast-moving capital has much less incentive to remain deployed.

Analyst famous that whereas hedge funds seemingly signify solely 10% to twenty% of ETF holders, their exercise can overwhelm flows within the quick time period when the commerce stops working.

Bloomberg information reveals that the unwind is seen in derivatives markets as effectively.

Bitcoin futures open curiosity on Chicago Mercantile Alternate (CME) has fallen under Binance’s for the primary time since 2023, displaying lowered participation in cash-and-carry trades by US establishments after ETFs launched there.

One-month annualized foundation yields now hover close to 4.7%, barely clearing funding and execution prices, as spreads tighten and arbitrage alternatives fade.

CryptoQuant indicators present obvious demand turning unfavorable, whale and dolphin wallets shifting from accumulation to distribution.

Additionally, the Coinbase premium remained deeply unfavorable, suggesting weaker urge for food from US establishments.

On the similar time, leverage in Bitcoin futures has climbed to its highest degree since November, growing the market’s sensitivity to sharp strikes in both course.

Flows in different crypto ETFs underline that the sell-off will not be uniform.

Ethereum spot ETFs additionally recorded heavy outflows this week, together with $41.98 million on January 22, whereas XRP and Solana-linked merchandise noticed modest inflows, pointing to selective institutional repositioning moderately than a wholesale exit from digital belongings.

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