Bitcoin’s sharp price decline has pushed US spot Bitcoin exchange-traded fund (ETF) investors into loss territory, as sustained outflows signal weakening demand. Over the past two weeks alone, investors have pulled billions from Bitcoin ETFs while the asset slid to its lowest level in nine months, raising concerns about broader market direction.
Bitcoin Price Drops Below ETF Average Entry
Bitcoin recently fell to around $74,600, marking an approximate 11% drop from weekend levels near $84,000. This decline places the cryptocurrency well below the estimated average cost basis of US spot Bitcoin ETFs, calculated at roughly $87,800 per BTC based on total assets under management and holdings.
US-listed spot Bitcoin ETFs currently manage about $113 billion in assets and collectively hold around 1.28 million Bitcoin. With prices trading significantly lower, the average ETF investor is now holding positions at a loss.
ETF Outflows Accelerate Amid Market Weakness
Investor sentiment has weakened notably, with spot Bitcoin ETFs recording approximately $2.8 billion in net outflows over the last fortnight. This includes back-to-back weeks exceeding $1 billion in withdrawals, ranking among the largest outflow periods since these products launched.
Since peaking near $165 billion in assets, total ETF holdings have fallen more than 30%, while Bitcoin itself is down roughly 40% from recent highs.
Continued outflows and declining prices could push Bitcoin into a prolonged bearish phase. Persistent macroeconomic uncertainty and reduced risk appetite are pressuring demand, making a recovery in investor confidence essential to stabilize prices in the near term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.