- In terms of dollars, over $8.9 billion flowed out of the ETF ecosystem as investors suppressed exposure at the time of the downturn.
- As per the data, more than 42,000 BTC exited the fund, indicating a clear wave of distribution as market sentiment deteriorated.
Bitcoin has successfully reclaimed the over $70,000 level, which shows a move that has kept selling pressure after the weeks of volatile trading. The recovery comes following the reaction of markets to macro uncertainty and geopolitical tensions.
However, the push over $70k provides a short-term improvement in momentum; the data still indicates that a prominent portion of market members are still under pressure. The CryptoQuant report reveals that the holders of spot Bitcoin ETFs that widely show institutional and retail demand via regulated investment vehicles are now placed below their estimated average realised price.
Estimated at around $79,000, this cost basis leaves the average ETF investor having a loss instead of the latest rebound. ETF flows can obscure internal reallocations between participations, and the calculation cannot completely capture every stated transaction within the funds.
However, it offers a useful estimation of the aggregate entry level for ETF capital. The analysis from Darkfrost underscores the scale of the latest pressure over spot Bitcoin ETFs. With Bitcoin trading below the $70,000 threshold during most of the correction, these funds listed the biggest drawdown since their all-time high in terms of invested value.
The Stabilizing Market
In terms of dollars, over $8.9 billion flowed out of the ETF ecosystem as investors suppressed exposure at the time of the downturn. The pressure was mainly seen in the biggest product in the market, iShares Bitcoin Trust (IBIT) from BlackRock, which once had over 806,000 BTC at its peak and witnessed substantial withdrawals during the correction.
As per the data, more than 42,000 BTC exited the fund, indicating a clear wave of distribution as market sentiment deteriorated and price momentum weakened. These outflows showed a prominent source of selling pressure at the time of the decline, reinforcing the wider weakness over spot markets.
While big ETFs witnessed withdrawals, they mostly needed to redeem Bitcoin to meet redemptions, increasing supply in the market. Although the data indicates the situation may be stabilising.
The net drawdown from ETF holdings has amplified from around -$8.9 billion to about -$7.8 billion from the peak.
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