Bitcoin ETFs Hold Firm Despite Losses Amid Prolonged BTC Slump
U.S. spot Bitcoin exchange-traded funds are posting their largest unrealized declines since launching in January 2024, yet investor redemptions remain relatively contained, according to ETF analyst James Seyffart.
“The ETFs are still hanging in there pretty good,” Seyffart said in an X post on Wednesday, noting that holders are enduring their “biggest losses” with paper drawdowns of about 42% as Bitcoin (BTC) trades below $73,000. He added that recent outflows remain modest compared with the sizable inflows recorded earlier in the cycle.
ETF investors are underwater but largely holding positions
Before the October pullback, net inflows into spot Bitcoin ETFs totaled roughly $62.11 billion. That figure has since eased to about $55 billion, based on preliminary data from Farside Investors. “Not too shabby,” Seyffart said.
Separately, investment researcher Jim Bianco wrote on X Wednesday that the average spot Bitcoin ETF investor is approximately 24% “underwater and collectively holding.”
Analysts caution against short-term focus
Crypto analytics account Rand noted on X Tuesday that this marks the first time on record with three consecutive months of outflows from the products.
The outflows have coincided with a 24.73% decline in Bitcoin’s price over the past 30 days, with BTC trading at $70,537 at the time of publication, according to CoinMarketCap.
Some analysts emphasized broader performance trends. On Jan. 28, ETF analyst Eric Balchunas said Bitcoiners are being “very short-sighted,” pointing out that since 2022, Bitcoin has gained over 400%, compared with 177% for gold and 350% for silver. He added that those assets “still haven’t caught up” even after a strong year for precious metals.
Meanwhile, CryptoQuant CEO Ki Young Ju said on X Wednesday that “every Bitcoin analyst is now bearish.”
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