Early 2026 opens with weak crypto demand from ETFs.
The start of the year is marked by a clear lack of demand in the cryptocurrency market, reflecting a much more cautious stance from investors. This contraction in liquidity across the crypto sector is being strongly felt.
On the spot Bitcoin ETF side, after two years driven by large capital inflows and strong speculative momentum, early 2026 looks more like a phase of risk reduction.
Market participants appear to be reassessing their risk exposure in a more uncertain macroeconomic and geopolitic environment.
Recent data shows that investors are largely staying on the sidelines, with cumulative flows turning negative in 2026. Compared with the relatively solid levels seen in 2025, the year 2026 is starting with around $1.8B in net outflows.
The contrast with the dynamics observed in 2024 and early 2025 is striking.
Those periods were marked by sustained capital inflows and a significant expansion in market liquidity. However, it is important to note that 2025 ended on a more negative tone.
Cumulative ETF inflows declined noticeably from about $27B to $20B by year end, already signaling a slowdown in momentum before the start of 2026.
From this perspective, the current weakness appears more like an extension of a decelerating trend than a sudden break.
The absence of this liquidity is now being felt in the spot market. ETF flows played a meaningful role in expanding market liquidity.
With this demand channel currently weakened, spot markets are becoming more sensitive to selling pressure and short term volatility.
A sustained return of ETF inflows would likely be a key catalyst for restoring a stronger market structure, improving liquidity conditions, and rebuilding investor confidence.$BTC $ETH $BNB
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