Bitcoin ETFs Shed $243M as Crypto Market Rally Cools

In brief U.S. spot Bitcoin ETFs recorded a $243 million net outflow, driven by redemptions from Fidelity and Grayscale that outweighed BlackRock's $228 million inflow. Analysts frame the outflows as a short-term "tactical repositioning" and a normalization after strong January inflows, rather than a loss of long-term conviction. The market shows selective strength, with spot Ethereum and Solana ETFs seeing inflows, while institutional Digital Asset Trust (DAT) activity has moderated to a cautious pace. Decrypt’s Art, Fashion, and Entertainment Hub. Discover SCENE Bitcoin’s aggressive uptrend at the start of 2026 has slowed, triggering a liquidation spree and net outflows of $243 million from U.S. spot Bitcoin exchange-traded funds on Tuesday. The flows were mixed, with BlackRock’s IBIT seeing $228 million in inflows, offset by outflows from several major issuers, according to SoSoValue . Fidelity's FBTC led redemptions at -$312 million, followed by Grayscale’s GBTC (-$83 million), and smaller outflows from VanEck and Ark Invest/21Shares. The figures come as Bitcoin has pulled back from a weekly high over $94,000, dropping 1.7% on the day to just over $92,000, per CoinGecko data . Users of prediction market Myriad , owned by Decrypt ’s parent company Dastan, remain optimistic on its prospects, placing a 76% chance on the cryptocurrency’s next move taking it to $100,000 rather than $69,000. Analysts view the shift as a tactical pause rather than a loss of conviction. “The recent ETF outflows look temporary rather than structural,” Sergey Kravtsov, Co-founder & CEO at Papaya Finance, told Decrypt . “What we’re seeing is tactical repositioning driven by short-term price action.” This perspective is echoed by other market observers. “The recent outflows look more like a normalization after stronger inflows at the start of the year,” Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt . He noted that late 2025 selling pressure from tax-loss harvesting has eased, but as Bitcoin consolidates, “ETF flows could look more chaotic in the short term rather than follow a clear trend.”   Other corners of the market showed relative strength, underscoring the selective nature of the pullback. Spot Ethereum and Solana ETFs noted inflows of $114.74 million and $19.12 million, respectively. Meanwhile, Digital Asset Trust inflows, which hit $2.159 billion by December’s end, have moderated to $296 million and $559 million over the past two weeks, according to DeFiLlama data. This moderation reflects “caution and not disengagement,” Kravtsov told Decrypt . Otychenko added that with many DATs trading near or below their net asset value, “investor conviction remains fragile,” leading them to prefer holding cash as a buffer. Looking ahead With major overhangs like the MSCI decision now resolved, the macro backdrop of prospective rate cuts remains stable. Analysts see the current phase as consolidation within a range. “In the near term, crypto remains fundamentally strong,” Kravtsov said, pointing to “materially more mature” infrastructure versus previous cycles. “This phase looks like consolidation before the next leg of growth, not a downturn,” he added. Otychenko provided a technical framework for this view, noting that Bitcoin is still trading between key on-chain metrics—the true mean price and the short-term holder cost basis. “A more decisive move will likely require a return of liquidity and stronger participation from investors,” he concluded. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!