U.S. spot bitcoin ETFs returned to negative territory on Tuesday, recording $243 million in net outflows and breaking the strong inflow streak that marked the first trading days of 2026. The shift comes after more than $1.16 billion flowed into spot bitcoin ETFs across the first two sessions of the year, highlighting a pause rather than a sharp reversal in institutional demand.
Early-Year Momentum Pauses
According to data from SoSoValue, Tuesday marked the first day of net outflows for U.S. spot bitcoin ETFs in 2026. The pullback follows aggressive early-year positioning by institutional investors and signals a normalization phase after heavy inflows rather than a broad risk-off move.
Fidelity and Grayscale Lead the Outflows
The largest outflows came from Fidelity’s FBTC, which saw $312.24 million exit the fund in a single day. Grayscale’s GBTC also recorded $83.07 million in net outflows, while its Mini Trust saw $32.73 million withdrawn. ETFs managed by Ark & 21Shares and VanEck also posted net outflows, contributing to the negative daily total.
BlackRock’s IBIT Stands Out
While most spot bitcoin ETFs experienced redemptions, BlackRock’s IBIT was the clear exception. The fund attracted $228.66 million in net inflows on Tuesday, making it the only U.S. spot bitcoin ETF to post positive flows that day. Since the start of the year, IBIT has accumulated $888 million in net inflows, reinforcing its position as the dominant vehicle for institutional bitcoin exposure.
Institutional Rebalancing, Not Capitulation
Vincent Liu, CIO of Kronos Research, described the outflows as part of a healthy adjustment phase rather than a bearish signal.
“BTC ETF outflows look more like post-inflow normalization than risk-off,” Liu said, adding that institutions are rebalancing exposure instead of abandoning long-term conviction. He emphasized that a single day of ETF outflows does not outweigh the broader trend of sustained institutional allocation following strong inflows seen earlier in the cycle.
Bitcoin Price Holds Firm
Despite the sizable ETF outflows, bitcoin’s price remained relatively stable. At the time of writing, BTC was trading around $92,521, down 1.18% over the past 24 hours. Liu noted that this price action suggests consolidation rather than capitulation, indicating that market structure remains intact despite short-term flow volatility.
Nick Ruck, director of LVRG Research, echoed this view, describing the move as a modest pullback driven by normal profit-taking and portfolio rebalancing at elevated price levels.
Altcoin ETFs See Fresh Inflows
While spot bitcoin ETFs cooled, altcoin-focused products attracted fresh capital. Spot Ethereum ETFs recorded $114.7 million in net inflows on Tuesday, even as Grayscale and Fidelity products saw redemptions. XRP and Solana ETFs also posted net inflows of $19 million and $9 million, respectively.
Jeff Mei, COO at BTSE, said the rotation is logical given the relative upside potential in some altcoins compared to bitcoin, especially for assets still trading below their previous all-time highs.
Liu added that the relatively small inflow sizes into Solana and XRP ETFs suggest early positioning adjustments rather than a meaningful structural shift away from bitcoin.
What This Means for the Crypto ETF Market
The latest spot bitcoin ETF outflows appear to reflect short-term rebalancing after strong inflows rather than weakening institutional interest. With BlackRock’s IBIT continuing to attract capital and bitcoin holding key price levels, the broader narrative of institutional adoption and crypto ETF growth in the U.S. remains firmly intact.
