Exchange-traded funds (ETFs) for spot Bitcoin in the United States have experienced outflows for the first time since the inauguration of former President Donald Trump, due to concerns about the global adoption of the Chinese artificial intelligence application DeepSeek, which has alarmed investors and led to a massive sell-off in the cryptocurrency market yesterday.
Details of Outflows on January 28 According to data from SoSoValue, spot Bitcoin ETFs recorded outflows of $457.48 million on January 28, ending a seven-day streak of inflows that had exceeded $4.2 billion.
Notable Funds with Outflows The “FBTC” fund from Fidelity saw the largest outflows, losing $268.59 million, followed by Grayscale’s “GBTC” fund, which withdrew $108.47 million. The “BITB” fund from Bitwise and the “ARKB” fund from ARK 21Shares experienced withdrawals of $88.57 million and $50.11 million, respectively. Meanwhile, the “HODL” fund from VanEck recorded modest outflows of $5.68 million.
BlackRock Fund Only to Record Inflows On the other hand, BlackRock’s “IBIT” fund recorded exceptional inflows of $63.94 million, contributing to raising the total cumulative inflows to around $40 billion since its launch.
Bitcoin Declines Amid Massive Market Sell-off: What Are the Reasons? This major shift in Bitcoin fund flows coincided with a drop in its price from $105,000 to a low of $97,855, as nearly $1 billion was liquidated across the cryptocurrency market. Analysts believe the main reason behind this collapse is investors adopting a risk-off sentiment following the success of DeepSeek, the Chinese competitor to ChatGPT, which raised fears about U.S. dominance in the artificial intelligence sector.
