Spot Bitcoin and Ethereum ETFs Experience $1.82B Exodus During Precious Metals Surge
Bloomberg ETF analyst Eric Balchunas emphasized that many investors appear to have overlooked how Bitcoin "spanked everything so bad" throughout 2023 and 2024, while competing asset classes "still haven't caught up."
Approximately $1.82 billion has been withdrawn from United States-based spot Bitcoin and Ether exchange-traded funds (ETFs) throughout the last five trading sessions, as investor confidence deteriorated following a rally in precious metals markets.
From Monday through Friday, United States-based spot Bitcoin (BTC) ETFs experienced net withdrawals totaling $1.49 billion, while spot Ether (ETH) ETFs recorded $327.10 million in net outflows, based on data from Farside. These withdrawals occurred as the spot prices of both digital assets continued their downward trajectory, notwithstanding recent indicators of potential recovery. Throughout the previous seven-day period, Bitcoin and Ether have declined 6.55% and 8.99% respectively, with current trading values at $83,400 and $2,685, according to data from CoinMarketCap.
Bitcoin experienced a 7% increase throughout the two-day period preceding Jan. 15 driven by market speculation surrounding the US CLARITY Act, though this upward momentum proved fleeting.
Throughout this timeframe, Bitcoin ETF recorded its strongest inflow day for 2026 on Jan. 14, registering $840.6 million, immediately before The Crypto Fear & Greed Index, a measurement tool for overall crypto market sentiment, jumped to its peak score of the year with a "Greed" reading of 61.
ETF analyst characterizes Bitcoin pessimism as "very short-sighted"
Participants in the crypto market frequently monitor spot crypto ETF flows as a method to assess retail investor sentiment and obtain insights into the asset's short-term price trajectory.
Bloomberg ETF analyst Eric Balchunas characterized the pessimism surrounding Bitcoin's recent price performance relative to gold and silver as "very short-sighted."
"Bitcoin spanked everything so bad in '23 and '24," Balchunas stated in an X post on Saturday, highlighting that investors seem to have forgotten about that performance.
"Those other assets still haven't caught up even after having their greatest year ever and BTC being in a coma," Balchunas remarked. Balchunas explained that the "institutionalization narrative" became priced into Bitcoin rapidly and "ahead of it actually happening."
"So it had to take a breather so the actual narrative could catch up to the price," Balchunas stated.
Gold and silver achieved all-time peak values of $5,608 and $121, respectively, during this week. Nevertheless, on Friday alone, gold experienced an 8% decline to $4,887 and silver plummeted approximately 27% to $84.
Bitwise chief investment officer Matt Hougan stated in an X post on Jan. 15 that "Bitcoin's price will go parabolic if ETF demand persists long-term."