Bitcoin and Ethereum Stall After Investor Withdrawals from Crypto ETFs
By Mathew Di Salvo | 10 January 2026, 10:33
At the start of 2026, optimism was high in the cryptocurrency market as investors injected over $1.5 billion into US-based Bitcoin and Ethereum exchange-traded funds (ETFs) within just two days. This rush of capital initially boosted prices of both digital assets, reigniting hopes for a strong year ahead. However, the momentum has since stalled with substantial fund redemptions causing Bitcoin and Ethereum to lose their early gains and trade flat over the past week.
ETF Outflows Prompt Flat Trading
After the initial influx, investors pulled more than $1.3 billion out of Bitcoin ETFs and another $351 million from Ethereum ETFs during this week, according to data compiled by Farside Investors. The outflows have contributed to a pause in price appreciation for cryptocurrencies. Bitcoin was last quoted near $90,623, registering only a marginal 1% gain over the last seven days. Meanwhile, Ethereum remained steady around $3,093 after reaching a mid-week high of $3,293. The recent ETF withdrawals come on the heels of a challenging end to 2025, during which crypto markets struggled to recover following a historic sell-off in October. That month saw the liquidation of more than $19 billion in leveraged positions—the largest such event recorded in digital asset history—pressuring prices across the board.
Market Context: Weighing the Bigger Picture
Despite these near-term setbacks, market analysts urge investors not to lose sight of broader trends. The prevailing “debasing trade”—a strategy used to hedge against currency weakening—is expected to remain a dominant theme throughout 2026. Bitcoin, along with gold and other precious metals, featured prominently in this strategy last year as global economies, led by the United States, expanded their national debts.
“The move toward assets like Bitcoin as a protective store of value is likely a long-term play as governments continue to increase their liabilities,” said a market observer commenting for DL News.
Growing Accessibility of Crypto ETFs
A key factor driving investor interest has been the increasing availability of crypto ETFs in the United States. Approved by the Securities and Exchange Commission in 2024, these funds allow investors easier exposure to digital currencies through familiar financial products managed by prominent asset managers such as BlackRock, Fidelity, and Grayscale.
Meanwhile, other digital assets outside the Bitcoin and Ethereum ecosystem have shown strength. XRP and Solana, for example, climbed approximately 4% over the past week, trading at $2.09 and $136 respectively, illustrating continued interest in a broader range of cryptocurrencies.
As the crypto market navigates these ebbs and flows, observers emphasize the importance of monitoring ETF flow data and macroeconomic trends to better understand potential future price movements.
Mathew Di Salvo is a news correspondent with DL News. If you have tips or insights, contact him at [email protected].