Spot Bitcoin ETFs Reverse Course After Strong Inflow Run
Spot Bitcoin ETFs faced heavy selling pressure on Friday as fresh geopolitical tension tied to Greenland trade disputes hit global markets. The pullback marked a clear shift in investor mood after several days of strong inflows and followed a sudden drop in bitcoin prices.
U.S. spot Bitcoin ETFs recorded net outflows of $394.68 million on January 16, according to data from SoSoValue. The losses ended a four-day inflow streak that had brought more than $1.8 billion into the funds. That earlier buying wave had helped push bitcoin above $95,800 before the trend turned.
Fidelity’s FBTC led the outflows with $205.22 million leaving the fund in a single day. Grayscale’s GBTC, Bitwise’s BITB, and Ark & 21Shares’ ARKB also posted notable losses. BlackRock’s IBIT stood out as the exception, drawing $15 million in net inflows despite the broader retreat.
The reversal came just before a weekend market sell-off that followed reports of rising trade tensions between the United States and the European Union. U.S. equity markets were closed on Monday, leaving crypto markets to absorb the impact without support from traditional trading activity.
Greenland Trade Dispute Weighs on Bitcoin Price
Market pressure intensified after President Donald Trump threatened higher tariffs on imports from eight NATO allies unless Denmark agreed to sell Greenland. European officials responded by signaling possible countermeasures, including limits on American services, new taxes on U.S. firms, and restrictions on investment flows.
The headlines triggered an immediate reaction in crypto. Bitcoin fell from around $95,000 to near $92,500 and later slid further to $90,979. Analysts said the market was already fragile due to delays in U.S. crypto legislation, which left traders cautious before the geopolitical shock.
Rachael Lucas, a crypto analyst at BTC Markets, said the market was not positioned to handle added uncertainty. She warned that if macro pressure continues, Bitcoin could drop into the $67,000 to $74,000 range.
Other Crypto ETFs Show Mixed Signals
While spot Bitcoin ETFs saw sharp losses, other crypto-linked funds showed smaller moves. Ethereum ETFs recorded $4.6 million in net inflows, while spot XRP products added $1.1 million. Solana ETFs posted $2.2 million in outflows, their first daily loss since early December.
Researchers said uncertainty around trade policy is likely to keep crypto markets volatile in the near term, with investors closely watching both political signals and price action.
Notably, while this happened, on Monday, Bitcoin network hashrate fell below 1,000 exahash per second for the first time since mid September.