Bitcoin Jitters: Franklin’s EZBC Sees New-Year Outflow as Crypto Rout Deepens

Bitcoin Jitters: Franklin’s EZBC Sees New-Year Outflow as Crypto Rout Deepens

The Franklin Bitcoin ETF, EZBC, started 2026 on a cautious note, recording an estimated $5.05 million in net outflows on January 2, 2026. The redemption represents roughly 1.01% of the fund’s latest reported assets under management of about $500.0 million, signaling that a meaningful slice of investors opted to trim exposure rather than add on recent weakness.

The withdrawal comes after a volatile quarter for Bitcoin, during which sentiment has swung from institutional optimism to defensive positioning. While a 1% move in AUM is not yet a sign of broad capitulation, it suggests that some holders are reassessing risk as crypto markets struggle to regain sustained upward momentum. For a spot Bitcoin ETF that typically attracts investors looking for regulated access to the asset, this kind of flow shift can be an early barometer of changing conviction.

The related asset, BTC-USD, is currently trading at $89,769.99, down about 26.17% over the past three months. Despite this sharp drawdown, the 1-day technical stance remains a cautious Hold, reflecting a market caught between bargain-hunters and ongoing macro and regulatory uncertainties. The combination of negative price momentum and ETF outflows suggests that, for now, more investors are locking in gains or cutting losses than betting on an imminent rebound.

Still, with half a billion dollars in AUM, Franklin’s vehicle remains a significant channel for institutional and retail participation in Bitcoin’s next leg—whether that proves to be a further slide or a reversal higher. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.