Bitcoin ETF Investors Face 8% Losses as $3 Billion Exits Market in Two Weeks
US spot Bitcoin ETF consumers are basically the very buyers anticipated to supply a steady, long-term bid for the pioneer crypto. However, information reveals that these gamers at the moment are sitting on mounting unrealized losses, with little signal of recent demand stepping in to reverse the development.
Against this backdrop, Bitcoin’s gradual grind decrease is exposing a fault line on the coronary heart of its post-ETF period.
ETF Investors Underwater as Bitcoin Slips Below the $84,000 Cost Basis
According to on-chain information from Glassnode, the typical entry worth for US spot Bitcoin ETF buyers stands at roughly $84,100 per BTC.
With Bitcoin trading near $78,657 as of this writing, after briefly dipping beneath $75,000 over the weekend, this cohort is going through paper losses of roughly 8% to 9%.
For mainstream buyers who entered through regulated merchandise, the drawdown has turn into a quiet however persistent test of conviction.
This underwater place is already translating into accelerating outflows. After sturdy inflows in early January, momentum flipped sharply. Over the previous two weeks alone, almost $2.8 billion to $3 billion has been pulled from US spot Bitcoin ETFs.
Weekly redemptions of $1.49 billion and $1.32 billion have pushed cumulative flows again into unfavourable territory. This has erased a lot of the optimism that outlined the beginning of the yr.
Daily movement information highlights the strain, with internet outflows dominating buying and selling classes, together with -$708.7 million on January 21, -$817.8 million on January 29, and -$509.7 million on January 30.
Heavy promoting has been concentrated in the most important merchandise, led by BlackRock’s IBIT, which alone noticed outflows of roughly $528 million on January 30, and Fidelity’s FBTC.
A single-day influx of about $419.8 million on February 2 supplied solely fleeting reduction in an in any other case persistent downtrend.
“Aggregate ETF flows will not be shopping for the dip. Net institutional demand is coming nearly completely from a shrinking group of Treasury-style consumers with remaining balance-sheet capability,” said analyst Jamie Coutts.
According to Jamie, this isn’t sustainable beneath continued strain, with a sturdy Bitcoin backside doubtless requiring these actors to reverse their positioning —not simply gradual their promoting.
Vanishing Demand and Fading Macro Narratives Leave Bitcoin ETFs in a Holding Pattern
At the core of the selloff is a decline in demand, with Bitcoin down greater than 35% from its 2025 peak close to $126,000. Similarly, the macro narratives that after supported increased costs have pale.
Analysts level to shrinking liquidity, tighter monetary circumstances, and Bitcoin’s obvious decoupling from conventional hedges.
Unlike prior cycles, the asset has didn’t rally on greenback weak spot or heightened geopolitical danger, leaving it directionless as speculative curiosity wanes.
This just isn’t the primary time ETF buyers have slipped into the crimson. In November 2025, when Bitcoin briefly fell beneath the then-average ETF price foundation close to $89,600, analysts flagged an identical stress check.
The distinction now’s tone. Rather than panic promoting, the market is characterised by apathy. Investors will not be dashing to exit en masse. Instead, they’re additionally not shopping for.
“Investors seem extra selective, ready for clearer alerts on macro circumstances, liquidity, and whether or not Bitcoin can sustainably maintain above prior highs earlier than including publicity,” Bloomberg reported, citing Sean Rose, senior analyst at Glassnode.
He added that slowing accumulation amongst private and non-private firms mirrors the development in ETFs.
Without a recent catalyst, be it renewed ETF inflows, easing liquidity, or a compelling new narrative, the suggestions loop might persist. This might outcome in falling costs discouraging consumers, sidelined capital deepening weak spot, and conviction eroding additional.
Still, US spot Bitcoin ETFs collectively maintain an estimated $104.48 billion in property, representing a considerable base of long-term capital.
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