Bitcoin Pessimism Creeps In as Franklin’s EZBC Sees Nearly 2% of Assets Walk Out
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
The Franklin Bitcoin ETF, EZBC, logged a sizable outflow of $10.36 million on January 21, 2026, as investors continued to reassess their exposure to the volatile crypto market. The redemption represents roughly 1.94% of the fund’s latest reported assets under management, which stand at $533.76 million — a meaningful, if not yet destabilizing, shift in positioning.
The move suggests that a portion of Franklin’s client base is locking in losses or rotating away from direct Bitcoin exposure after a difficult quarter for the underlying asset. While a single session cannot define a trend, outflows of this magnitude often signal a loss of conviction among more tactical holders, especially when they occur against a backdrop of sustained price weakness.
The related asset, BTC-USD, is currently trading around $89,437, having shed roughly 21.52% over the past three months as the market digests shifting macro expectations and regulatory crosscurrents. Short-term momentum remains negative, with a 1-day technical signal registered as Sell, reinforcing the cautious tone that appears to be spilling into ETF flow dynamics.
For now, EZBC’s overall scale cushions the impact of the latest redemptions, but a continuation of outflows could pressure liquidity and widen bid–ask spreads, particularly during bouts of intraday volatility in Bitcoin itself. Investors will be watching whether this week’s pullback marks a temporary bout of nerves or the early stages of a more prolonged retreat from spot Bitcoin funds.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.