Bitcoin ETF investors slide underwater after $2.8B outflows

Bitcoin has fallen below the average cost basis of US spot Bitcoin ETFs after nearly $2.8 billion was pulled from the funds over the past two weeks.

Alex Thorn, head of research at Galaxy Digital, said Bitcoin’s drop to around $74,600 means the average ETF buyer is now sitting on losses.

“This means the average Bitcoin ETF purchase is underwater,”

Thorn said, as Bitcoin slid about 11% over the weekend to a nine-month low.

Data from CoinGlass shows the 11 spot Bitcoin ETFs recorded $1.49 billion in outflows last week and $1.32 billion the week before, marking two of their largest weekly withdrawals.

Despite the sell-off, Thorn said institutional investors have largely held their positions, noting cumulative ETF inflows are down only 12% from their peak while Bitcoin is down nearly 40%.

Nick Ruck, director at LVRG Research, warned that Bitcoin risks entering a full bear market if demand fails to recover.

“The crypto market continues its sell-off as Bitcoin falls to around $76,000 amid heightened macro uncertainty,”

Ruck said, adding that prolonged weakness could reinforce long-term bearish technical patterns.