Bitcoin and Ethereum ETFs: A Rocky Start to 2026
Bitcoin and Ethereum exchange-traded funds (ETFs) are losing momentum in 2026. Crypto funds, which initially attracted $1.5 billion in inflows this year, have suffered significant outflows, nearly erasing early year gains. According to a report from CoinShares, ETF outflows reached $1.3 billion in just four days.
What’s Behind the Decline?
The market downturn is attributed to a shift in sentiment regarding potential Federal Reserve (Fed) rate cuts. Initially, investors anticipated the Fed would lower rates in March. However, futures trading data now suggests there is a 95% likelihood that rate hikes will remain unchanged at the January meeting, with only a 26.2% chance of a cut by March. This adjustment is influencing crypto investors to pull back from Bitcoin ETFs.
Key Statistics and Trends
Bitcoin bore the brunt of the impact, experiencing $405 million in outflows last week alone. Surprisingly, even short-Bitcoin funds saw $9.2 million in outflows, illustrating mixed market sentiment. Bitcoin’s price, as of the latest update, is trading around $91,722, marking a slight daily increase of 1%, according to CoinGecko.
Interestingly, while Bitcoin and Ethereum ETFs faced challenges, altcoin funds, including XRP, Solana, and Sui, bucked the trend. These altcoin products saw substantial inflows, with $45.8 million, $32.8 million, and $7.6 million, respectively, flowing into their funds.
Market Outlook for 2026
The Federal Open Markets Committee (FOMC) will soon meet (January 27-28) to discuss interest rates. While the likelihood of no immediate changes is high, long-term forecasts suggest a possible rate cut by mid-year, with predictors estimating a 59% chance of a 25-basis point cut before July. These decisions will continue to play a significant role in crypto market movements.
If you’re looking for ways to navigate the evolving crypto market, consider diversifying your portfolio. Products like the Grayscale Digital Large Cap Fund offer exposure to multiple digital assets, providing a balanced approach during uncertain times.
Stay Informed
As markets evolve, up-to-date information remains critical. Follow reliable crypto platforms to better understand market trends, ETF performance, and Federal Reserve decisions. Subscribe to newsletters and check prediction market platforms like Myriad for the latest sentiment insights.
