Bitcoin ETFs Reverse Course as Trade Tensions Shake Crypto Markets

20. Jan 2026 Posted by Bailey S. on News

U.S. spot Bitcoin exchange-traded funds swung back into negative territory last Friday, recording heavy net outflows as broader crypto sentiment weakened following a sharp weekend sell-off. Traditional U.S. markets were closed on Monday, leaving digital assets to absorb the shock alone.

Data shows Bitcoin ETFs posted combined net outflows of roughly $394.7 million on Friday. The pullback was led by Fidelity’s FBTC, which accounted for more than $205 million in withdrawals. Grayscale’s GBTC, Bitwise’s BITB, and Ark & 21Shares’ ARKB also saw notable redemptions, partially offset by modest inflows of about $15 million into BlackRock’s IBIT.

The reversal brought an abrupt end to a four-day inflow streak that had attracted more than $1.8 billion into spot Bitcoin funds. Those inflows coincided with a market rebound that briefly lifted Bitcoin above $95,800.

Momentum faded quickly as fresh geopolitical concerns emerged. Reports of a potential escalation in trade tensions between the United States and the European Union sparked a broader risk-off move across digital assets. Over the weekend, threats of expanded tariffs and possible retaliatory measures from Europe unsettled markets already grappling with fragile sentiment.

Bitcoin initially slid from around $95,000 to near $92,500, before extending losses further. At the time of writing, BTC was trading close to $9,279, reflecting growing caution among investors.

Uncertainty has also spilled into other crypto-linked funds. Ethereum ETFs recorded modest net inflows of approximately $4.6 million, while spot XRP products added about $1.1 million. In contrast, Solana ETFs posted net outflows of $2.2 million, their first daily withdrawal since early December.

With trade policy details still unclear and regulatory timelines in flux, the market remains vulnerable to sharp swings. Until there is greater clarity on the macro front, crypto investors appear braced for continued volatility rather than a quick return to risk-on conditions.