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Investors Yank 12% of Assets from Bitwise Ethereum ETF as Crypto Nerves Return

Investors Yank 12% of Assets from Bitwise Ethereum ETF as Crypto Nerves Return

Ethereum ETF Sees Double-Digit Outflow as Crypto Sentiment Sours Again

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The Bitwise Ethereum Strategy ETF (AETH) recorded a sharp single-day outflow of $949,375 on January 16, 2026, a significant redemption equal to roughly 12.2% of its latest reported assets under management (AUM) of $7.81 million. The move underscores mounting investor caution around crypto-linked products after a volatile stretch in digital asset markets.

Such a sizeable withdrawal relative to AUM suggests that a concentrated group of holders is reducing exposure rather than a broad-based trickle of outflows. For a relatively small, futures-based Ethereum strategy fund, a 12% hit to assets in one session can amplify liquidity considerations and trading spreads, particularly if redemptions persist.

The related asset, BTC-USD, is currently trading at $88,859.99, down about 18.9% over the past three months, reflecting a challenging environment for major cryptocurrencies after their earlier 2025 rally. Short-term sentiment looks fragile as well: the coin’s 1-day technical signal is flashing a Strong Sell, reinforcing the risk-off tone that may be driving redemptions from crypto-exposed ETFs like AETH.

The combination of a steep three-month price pullback in Bitcoin, bearish technicals, and double-digit percentage outflows in crypto-themed ETFs highlights how quickly sentiment can pivot in this asset class—especially for niche products with smaller asset bases, where investor repositioning is felt more acutely.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.

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