🚨 “Almost $1 Billion Gone in a Day”: ETF Investors Flee as Bitcoin Cracks $85K and Risk Appetite Vanishes

Wall Street hit the eject button on crypto.

U.S.-listed spot Bitcoin and Ether ETFs suffered a near-$1 billion bloodletting in a single session, as sliding prices, macro anxiety, and a sudden risk-off wave pushed institutional investors to slash exposure fast.

According to SoSoValue data, investors pulled $817.9 million from spot Bitcoin ETFs on Jan. 29, marking the largest daily outflow since Nov. 20. Ether ETFs followed closely behind, losing $155.6 million as selling pressure spread across the board.

The timing was no coincidence.

As ETF money rushed for the exits, Bitcoin fell sharply during U.S. trading hours, slicing through $85,000 before plunging toward $81,000. By Asian market hours Friday, BTC was hovering near $83,000, still nursing heavy losses. Ether fared no better, tumbling more than 7% on the day.

ETF redemptions tracked the price action almost tick for tick.

BlackRock’s IBIT absorbed the heaviest blow, bleeding $317.8 million in one day. Fidelity’s FBTC saw $168 million exit, while Grayscale’s GBTC lost $119.4 million. Even smaller issuers weren’t spared, with Bitwise, Ark 21Shares, and VanEck all reporting meaningful outflows.

Ether ETFs told the same story. BlackRock’s ETHA shed $54.9 million, Fidelity’s FETH lost $59.2 million, and Grayscale’s ether products continued their steady asset drain. Total ether ETF assets slid to $16.75 billion, down sharply from over $18 billion earlier this month.

What stood out wasn’t just the size of the outflows — it was their coordination.

Rather than rotating from Bitcoin into Ether, institutional investors appeared to be cutting crypto exposure altogether. That marks a clear shift from earlier in January, when inflows into ether ETFs often cushioned weakness in Bitcoin products.

This time, everything was sold.

The synchronized exits suggest that crypto ETFs are increasingly treated as a single risk bucket — and when sentiment turns, diversification inside crypto doesn’t matter.

The ETF exodus unfolded against a broader backdrop of rising volatility across global markets.

Equities weakened. Implied volatility climbed. And renewed uncertainty around U.S. economic policy weighed heavily on sentiment — particularly speculation around potential Federal Reserve leadership changes. Analysts flagged Fed contender Kevin Warsh as a bearish signal for Bitcoin, adding another layer of unease.

At the same time, leveraged positions across crypto markets were unwound aggressively. Once Bitcoin broke key technical support near $85,000, margin calls cascaded, amplifying spot selling in thin liquidity.

“Bitcoin crashed to $81k due to a risk-off wave,” said Andri Fauzan Adziima, Research Lead at Bitrue.
He cited hawkish Fed expectations, heavy spot ETF outflows exceeding $1 billion, geopolitical tensions, and a broader flight from risk as the main drivers.

Despite the violence of the move, some analysts caution against calling this the start of a new bear market.

“This triggered massive leveraged liquidations after breaking key support (~$85k 100-week SMA), creating a self-reinforcing sell-off in thin liquidity,” Adziima explained. “It’s a leverage shakeout amid macro pressure, not the start of a bear market, with rebound potential if supports hold.”

For now, ETF flows appear to be following price — not leading it. As long as Bitcoin and Ether remain under pressure, analysts expect demand for spot crypto ETFs to stay fragile, with institutions waiting for volatility to cool before stepping back in.

The message from Thursday’s data was blunt:
When risk appetite disappears, even Wall Street’s shiny new crypto ETFs don’t offer shelter.

And nearly $1 billion fleeing in a single day is proof that institutional conviction, while growing, is still conditional — and still quick to run for the door.