Bitcoin's sharp decline has sent the average US spot Bitcoin ETF investor into negative territory. This marks the first time since these investment products launched that the typical holder faces losses.
The flow-weighted cost basis across all U.S. Bitcoin ETFs now stands at nearly $89,600. Bitcoin dropped below this threshold on Tuesday, according to Glassnode analyst Sean Rose. The cryptocurrency traded at $91,261 at the time of reporting. Some early investors who bought Bitcoin between $40,000 and $70,000 remain profitable despite the recent downturn.
BTC 24-hour price action, Source: CoinMarketCap
Long-Term Holders Show Resilience
Vincent Liu, Chief Investment Officer at Kronos Research, provided insight into investor behavior under current market conditions. He noted that most ETF holders maintain long-term positions. Being underwater does not typically trigger immediate selling pressure from this cohort.
Liu emphasized that broader market factors drive current price action. Liquidity conditions and macroeconomic signals determine whether losses translate into sustained downward pressure. Tight financial conditions can amplify selling. Clear signals of monetary easing could provide relief.
The outflow trend began on November 12 when Bitcoin ETFs recorded $278.1 million in withdrawals. The situation worsened on November 13 with $866.7 million exiting the products. This represented the second-worst trading session on record for Bitcoin ETFs. Outflows continued on November 14 with $492.1 million in redemptions.
Major ETF Products Record Substantial Withdrawals
Monday's trading session extended the bleeding to five consecutive days. Combined outflows reached $254.6 million across all US spot Bitcoin ETFs, according to Farside Investors data.
BlackRock's iShares Bitcoin Trust recorded the largest single-day withdrawal. The fund saw $145.6 million exit on Monday alone. Fidelity's Wise Origin Bitcoin Fund posted $12 million in outflows. ARK 21Shares Bitcoin ETF lost $29.7 million. The Bitwise Bitcoin ETF shed $9.5 million.
Ethereum ETFs faced similar pressure. Spot Ether ETFs recorded combined outflows of $182.7 million on Monday. BlackRock's iShares Ethereum Trust ETF suffered the heaviest impact. The fund witnessed $193 million in single-session withdrawals.
The market's risk-off sentiment reflects broader concerns about monetary policy and economic conditions. Investors await clearer signals from central banks regarding future interest rate decisions.
Solana ETFs continued their remarkable performance streak amid the broader crypto market selloff. The products posted another day of positive inflows on Monday.
The Bitwise Solana Staking ETF attracted $7.3 million in new investment. The Grayscale Solana Trust ETF added $0.9 million. These funds have recorded inflows every trading day since launching in late October.
Cumulative net inflows across the three Solana ETFs now total approximately $390 million. This sustained interest demonstrates investor appetite for alternative cryptocurrency exposure despite market volatility.
