Bitcoin and Ethereum ETFs lose nearly $1 billion in a single day, institutional withdrawals put pressure on the crypto market

On January 30, news reports indicate that amid a sharp correction in cryptocurrency prices, US-listed spot Bitcoin and Ethereum ETFs experienced concentrated redemptions. Data shows that on January 29, daily capital outflows approached $1 billion, with approximately $818 million flowing out of Bitcoin ETFs, marking the largest single-day outflow since November last year; Ethereum ETFs saw a decrease of about $156 million, continuing the recent downward trend.

Capital outflows were almost synchronized with price declines. After Bitcoin fell below $85,000, it briefly dipped to around $81,000, while Ethereum dropped over 7% on the same day. Risk appetite rapidly cooled, prompting institutions to reduce overall crypto asset exposure rather than switch between different tokens.

From a product structure perspective, many mainstream funds experienced significant withdrawals. Some larger Bitcoin ETFs lost over $300 million in a single day, and other products also saw capital reductions in the tens of millions of dollars. Regarding Ethereum ETFs, major funds also recorded substantial net outflows, with total assets under management dropping to approximately $16.7 billion, below the high point earlier this month.

Market sentiment has worsened, closely linked to macro factors. Recent uncertainties in US policy outlook, potential changes in interest rate paths, coupled with a weakening stock market and rising implied volatility, have suppressed the performance of risk assets. Some analysts believe that expectations of a more hawkish Federal Reserve leadership are also increasing market defensive sentiment.

Meanwhile, large-scale deleveraging in the derivatives market has further amplified volatility. After Bitcoin broke through key technical support levels, it triggered a chain of liquidations, accelerating the downward movement in a liquidity-constrained environment.