Bitcoin ETF Holders: Crying in Their Crypto Soup?

Markets

What to know (or how to feel smug about your own financial decisions):

  • Bitcoin spot ETF investors are currently nursing paper losses of around 15%, because apparently “HODL” doesn’t mean “hold through a 15% dip” for everyone.
  • Short-term traders might start selling faster than a Real Housewife at a sample sale, adding to the market’s already impressive drama.
  • Long-term institutional investors are sticking around like a bad ex who won’t take the hint. “Sticky,” they call it. Charming.

Bitcoin’s price has taken a nosedive, leaving ETF investors with losses that would make even Liz Lemon’s student loans look manageable. On average, they’re down 15%, which is basically the financial equivalent of realizing you’ve been wearing your shirt inside out all day.

Since their U.S. debut, these investors have been paying an average of $90,200 per BTC, according to Bianco Research and 10x Research. Now, with Bitcoin trading around $76,800, they’re looking at a paper loss of $13,400 per BTC. That’s enough to make you question whether “to the moon” was just a clever marketing slogan.

Short-term traders, who were probably daydreaming about Lambos and private islands, might start hitting the eject button faster than Jenna Maroney at a karaoke bar. These redemptions could add to the market’s bearish mood, which is already more gloomy than a Kenneth story about his cat.

Demand for ETFs has plummeted since the Oct. 8 crash, which social media is blaming on Binance. Because of course it’s Binance. It’s always Binance. Or is it? cue dramatic music

January marked the third straight month of net outflows, the first such streak since these ETFs were born. The 11 spot Bitcoin ETFs have seen a net outflow of $6.18 billion, according to SoSoValue. That’s a lot of avocado toast money gone.

If the bear market deepens, we could see a full-scale capitulation-long-term holders throwing in the towel, liquidating, and sending volumes through the roof. It’s like the financial version of a reality TV show meltdown, but with fewer hair extensions.

Analysts, however, say institutional capital is “sticky,” meaning it’s here for the long haul. So, no full-blown capitulation, just a slow, painful realization that maybe, just maybe, they should’ve listened to their grandma and invested in bonds.

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2026-02-02 12:25