#ETFs. January 2026 is nearly in the books 👀 and if ETF flows are any guide, this was not a quiet month. CMC Research reviewed YTD ETF flow data and found a market behaving in contradictions: sudden surges of aggressive buying, sharper and more decisive waves of selling, and an unusually high concentration of conviction in a narrow slice of products.
Beneath the surface, the numbers tell a story that’s far less bullish:
Key Takeaway #1: The Tape Says “Risk Off”
Despite pockets of enthusiasm, the dominant signal is capital leaving the system.
Total net flows across all analyzed funds stand at –$354.2 mil in the last month, signaling a meaningful withdrawal of capital, and it points to investors actively reducing exposure rather than passively reallocating.
Even more telling is how concentrated the exits are. Just three ETFs: GBTC, ETHA, and FBTC, account for ~$1.34 billion of outflows, or roughly 92% of the total outflows. When capital exits cluster this tightly, it’s usually a sign of institutional repositioning rather than retail churn.
Fidelity Wise Origin Bitcoin Fund (FBTC) at -$757.20M, followed by the Grayscale Bitcoin Trust (GBTC) at -$408.10M, and the 21Shares Ethereum ETF (ETHA) at -$175.60M. The outflows from major Bitcoin vehicles like GBTC and FBTC suggest significant profit-taking or rotation among institutional investors.
Key Takeaway #2: Bitcoin Is Being Sold—Ethereum Is Being Chosen
The outflows are not evenly distributed. They are overwhelmingly driven by Bitcoin-linked products, while a small group of Ethereum vehicles quietly absorbs new capital.
Largest BTC outflows:
🔹 Fidelity Wise Origin Bitcoin Fund (FBTC):-$757.20M
🔹 Grayscale Bitcoin Trust (GBTC): -$408.10M
🔹 Ark 21Shares Bitcoin ETF (ARKB): -$48.90M
The exits from flagship Bitcoin ETFs suggest profit-taking, de-risking, or rotation particularly among larger allocators who tend to move first and move size.
On the other side of the ledger, funds attracted capital inflows are overwhelmingly focused on Ethereum:
🔹 Grayscale Ethereum Staking ETF Shares (ETH): $147.10M
🔹 Fidelity Ethereum Fund (FETH): $87.00M
Although this inflow has been offset by the large outflow from 21Shares Ethereum ETF (ETHA) -$175.60M.
Bitcoin inflows do exist but they’re highly concentrated. IBIT topped with $760.60M inflows, and the next BTC-linked product in the top inflow list is Bitwise Bitcoin ETF at +$40.5M. The message is clear: interest hasn’t vanished, but conviction has narrowed.
Summary
January’s ETF flows are not telling a simple “bull vs. bear” story. They’re signaling rotation, selectivity, and rising discrimination among investors.
Capital is leaving Bitcoin ETFs at scale. Ethereum is quietly gaining favor. And beneath it all, the net result is still a sizable withdrawal of risk capital.
When inflows look strong but totals are deeply negative, markets are usually transitioning instead of trending. That’s the signal January leaves behind.
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