Cryptocurrency investment products saw a $2.17 billion inflow last week, driven primarily by Bitcoin and Ethereum, before facing a sudden outflow.
Between January 10 and January 16, cryptocurrency investment products experienced a significant inflow of $2.17 billion, the highest recorded since October 2025, according to CoinShares.
This positive trend persisted until January 16, but by the end of the week, the sentiment among investors shifted, resulting in a daily outflow of $378 million. Analysts indicate that this reversal may be linked to a diplomatic controversy involving Greenland, potential new tariffs, and ambiguity regarding the Federal Reserve Chair's appointment.
Bitcoin was the primary beneficiary, attracting $1.55 billion, while Ethereum funds received $496 million. This influx occurred alongside discussions in the U.S. Senate about the Clarity Act, which could affect stablecoin yields. Solana-based investments brought in $45.5 million, with other notable gainers including XRP ($69.5 million), Sui ($5.7 million), LIDO ($3.7 million), and Hedera ($2.6 million).
Regionally, the U.S. led the inflow with $2.05 billion, followed by Germany ($63.9 million), Switzerland ($41.6 million), and Canada ($12.3 million). Additionally, stocks of blockchain companies saw inflows of $72.6 million.
Bitcoin ETF Highlights
In the realm of Bitcoin ETFs, net inflows reached $1.42 billion last week, marking the highest weekly figure since October, largely driven by BlackRock's IBIT fund, which alone accounted for $1.03 billion.
Nick Rak, director of LVRG Research, noted that these inflows indicate a revival of institutional interest and confidence in Bitcoin's future. He cautioned that ongoing accumulation could result in supply constraints that support price recovery. However, a recent price correction has led to a wave of liquidations, with forced liquidations in the crypto market reaching $874.53 million in a single day, predominantly impacting long traders, who faced losses of $788.05 million.
Vincent Liu, CIO of Kronos Research, attributed the downturn to an overheated derivatives market, stating,
“Bitcoin's pullback to $92,000, despite strong inflows into ETFs, highlights the influence of derivatives. Excessive leverage with low liquidity during a reversal triggered cascading liquidations.”
Liu noted that while structural support for Bitcoin remains intact, it is susceptible to sharp declines in the short term due to leverage and liquidity issues.
Spot Ethereum ETFs also performed well, pulling in $479 million over the week, their best results since October. It is worth mentioning that from January 2 to 10, cryptocurrency investment products faced an outflow of $454 million.
