U.S. spot Bitcoin (BTC) ETFs recorded $486 million in net outflows Wednesday, extending a reversal following strong January inflows.
The outflows marked the second consecutive day of redemptions, with Fidelity's FBTC shedding $247.6 million and BlackRock's IBIT experiencing $130 million in exits.
Ethereum (ETH) ETFs posted $98.45 million in outflows while XRP ETFs saw their first negative day with $40.80 million in redemptions.
What Happened
More than $700 million flowed out of Bitcoin ETFs over two days following $1.2 billion in inflows during the first three sessions of 2026.
Bitcoin declined to $91,000 Wednesday after testing $94,000 earlier in the week.
CryptoQuant CEO Ki Young Ju said diversified liquidity channels make timing capital inflows increasingly difficult.
Strategy holds 673,783 BTC valued at approximately $63 billion, representing over 3% of Bitcoin's total supply at an average acquisition price of $75,026.
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Why It Matters
Institutional long-term holding patterns have disrupted the historical whale-retail sell cycle from previous bear markets.
Analysts suggest the changed market structure reduces likelihood of -50% crashes from all-time highs seen in past cycles.
Vincent Liu of Kronos Research characterized outflows as post-inflow normalization rather than broader risk-off sentiment.
Bitcoin's price stability during outflows suggests consolidation rather than capitulation, holding above $92,000.
Solana ETFs bucked the trend with $1.97 million in inflows Wednesday.
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