US spot Bitcoin exchange-traded fund investors are showing resilience despite Bitcoin’s four-month decline and the largest paper losses since the products launched in January 2024.
“The ETFs are still hanging in there pretty good,”
Said ETF analyst, James Seyffart, noting that recent outflows remain modest compared with the surge of inflows seen at the market’s peak.
While Seyffart said Bitcoin ETF holders are sitting on paper losses of about 42% with Bitcoin below $73,000, he added that net inflows have only slipped from roughly $62.1 billion before October to about $55 billion.
Investment researcher Jim Bianco said the average spot Bitcoin ETF holder is now about 24% underwater, but is still collectively holding positions rather than exiting.
Some analysts have flagged the current period as the first time ETFs have seen three consecutive months of outflows, coinciding with a near-25% drop in Bitcoin’s spot price over the past month.
Others argue investors are being overly pessimistic, with ETF analyst Eric Balchunas saying Bitcoin remains up more than 400% since 2022, outperforming gold and silver despite the recent drawdown.
CryptoQuant chief executive Ki Young Ju said sentiment has turned broadly bearish, though analysts note ETF flows suggest longer-term conviction among institutional investors remains intact.
At the time of reporting, Bitcoin price was $70,520.11.