A Tough Start to 2026. January Outflows Hit Core Crypto ETFs

January Outflows Hit Core Crypto ETFs

Redemptions in January were concentrated in Bitcoin- and Ether-linked ETFs, which together account for the majority of US-listed crypto ETF assets.

• Bitcoin-linked products recorded net outflows of $361.9M during the month, while maintaining a dominant $128.6B in AUM. Despite the scale of redemptions, Bitcoin ETFs continued to represent the core of US crypto ETF exposure by both size and liquidity, with trading activity remaining consistent throughout the period.
• Ethereum-linked ETFs experienced net outflows of $160.6M, ending January with $21.4B in aggregate AUM. While flows weakened alongside broader market conditions, Ether products retained their position as the second-largest segment within the US crypto ETF universe.
• Multi-asset products remained a smaller allocation within portfolios, with a total AUM of $2.9B. Diversified baskets recorded net outflows of $52.2M during the month, broadly in line with the risk-off tone seen across single-asset products.
• In contrast, select altcoin-linked ETFs recorded positive net flows. Solana- and XRP-linked products attracted $59.5M and $61.0M in net inflows, respectively, closing January with AUMs of $3.1B for Solana products and $3.2B for XRP products. These inflows stood out against otherwise widespread redemptions across the US-listed ETF landscape.

Fund-Level Activity

At the fund level, January flows were concentrated among a small number of large US-listed products. 

• The ProShares Bitcoin Strategy ETF
  BITO
  -3.72%
  led all ETFs by net inflows during the month, adding $362.9M and closing January with $2.41B in AUM. The iShares Bitcoin Trust ETF
  IBIT
  -3.66%
  followed, recording $280.2M in net inflows and remaining the largest product, with $64.8B in AUM at month-end.
• Within Ether-linked products, the Grayscale Ethereum Mini Trust ETF
  ETH
  -2.84%
  recorded the strongest monthly inflows, adding $110.8M and closing January with $2.05B in AUM.
• Altcoin-linked products were also well represented among the top gainers, with the Bitwise XRP ETF
  XRP
  -1.4%
  and the Franklin XRP ETF
  EZBC
  -3.69%
  recording inflows of $72.9M and $63.4M, respectively.
• Overall, seven of the top ten ETFs by January net inflows were US-domiciled, highlighting the continued concentration of fund-level activity within US-listed vehicles.

American Dominance

US-listed products continued to dominate the crypto ETF landscape in January. Despite net outflows of $455.4m, American-domiciled ETFs closed the month with $138.4B in AUM, representing the majority of global crypto ETF assets.

The concentration of assets within US-listed vehicles remained high across Bitcoin, Ethereum and altcoin products, with US funds accounting for the majority of the largest ETFs by both AUM and monthly flows. 

Outlook

January closed as one of the weakest months for US-listed crypto ETF flows since early 2024, with redemptions concentrated in Bitcoin- and Ether-linked products amid a sharp market drawdown. Early February price action has extended this pressure, with ETF flows continuing to track broader market weakness rather than regulatory or structural developments. Regardless, the US continues to dominate both AUM and activity, a trend which shows no signs of slowing.

Data Sources: 

TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services 

CoinDesk (Bitcoin, CD20, CD80, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price

Disclaimer: TrackInsight considers flows from an ETF's perspective, treating the fund's first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.