Crypto Market Faces Pressure as Bitcoin and Ethereum ETFs Attract Capital Amid VIX ETF Volatility

UnluckyMiner · 2026-01-27T22:18:17+00:00

Recent macroeconomic shifts have led to record inflows into spot crypto ETFs, particularly BlackRock's Bitcoin ETF, which saw $1.42 billion in inflows. Ethereum ETFs also performed well, attracting $479 million. However, ongoing market volatility and significant liquidations are impacting price stability and sentiment.

UnluckyMiner

2026-01-27 22:18:17

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The volatile macroeconomic environment has triggered a significant shift in institutional capital allocation, with spot crypto ETFs drawing record inflows while traditional volatility hedges like VIX ETF maintain elevated levels. Last week marked a turning point for digital asset investment vehicles, as capital flows surged to multiyear highs despite ongoing market turbulence.

BlackRock’s IBIT Dominates Bitcoin ETF Inflows as Market Stabilizes

Bitcoin spot ETFs witnessed an unprecedented surge, with net inflows reaching $1.42 billion over the week—the strongest weekly performance since early October 2025, according to market data. BlackRock’s IBIT product led the charge, capturing $1.03 billion in fresh capital as investors positioned for potential upside. The appetite for Bitcoin ETF exposure reflects growing institutional confidence, even as macro headwinds persist. Current BTC trading activity reflects this cautious optimism, with the asset hovering near $89,090.

Ethereum ETFs Log Another Record Week Amid Competitive Flows

Not to be outdone, spot Ethereum ETFs attracted $479 million in net inflows during the same period, marking the highest weekly total since October. This parallel momentum in both Bitcoin and Ethereum vehicles suggests broad-based institutional adoption of crypto exposure through regulated investment products. The Ethereum price currently sits near $3,020 as market participants continue rotating capital into these vehicles.

Liquidations and Price Pressure Weigh on Market Sentiment

The recent uptrend faced headwinds as Bitcoin pulled back from its recent $97,000 high, currently trading near $89,090 amid macro uncertainty and active leverage unwind. The crypto market experienced approximately $824 million in liquidations over the past 24 hours, with long positions accounting for $763.7 million of this figure. This deleveraging process, often exacerbated during volatile periods tracked by indicators like VIX ETF movements, typically precedes either stabilization or renewed selling pressure.

The divergence between strong ETF inflows and persistent price weakness suggests that while institutional players are accumulating exposure through regulated channels, the broader market continues to process significant leverage reduction. This dynamic remains a critical factor for ETF performance in coming weeks.

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