Spot Bitcoin ETFs lose $681M in first week of 2026 as risk appetite fades

TL;DR:

Spot Bitcoin ETFs reversed early inflows in 2026 and posted four straight days of outflows as fading rate-cut hopes and rising geopolitical risks pushed investors into risk-off positioning.

Key Points:

Background:

Exchange-Traded Funds (ETFs) are investment vehicles that track cryptocurrency prices and trade on traditional stock exchanges. Bitcoin and Ethereum ETF approvals have been major milestones for crypto adoption, allowing institutional and retail investors to gain exposure without directly holding digital assets.

Why It Matters:

ETF approvals are significant because they provide regulated access to cryptocurrency investments for traditional finance investors, potentially bringing billions in new capital to the crypto market. They also signal regulatory acceptance and legitimization of digital assets as an investment class.