TLDR Bitcoin ETFs experienced $2.8 billion in outflows over two weeks, signaling investor withdrawal. The average purchase price for Bitcoin ETFs is now underwaterTLDR Bitcoin ETFs experienced $2.8 billion in outflows over two weeks, signaling investor withdrawal. The average purchase price for Bitcoin ETFs is now underwater

Bitcoin ETFs Face Losses as $2.8B Exits Amid Price Drop

2026/02/03 03:14
3 min read

TLDR

  • Bitcoin ETFs experienced $2.8 billion in outflows over two weeks, signaling investor withdrawal.
  • The average purchase price for Bitcoin ETFs is now underwater due to Bitcoin’s recent price drop.
  • Institutional investors in Bitcoin ETFs are holding onto their positions despite the ongoing market downturn.
  • Total assets under management for U.S. Bitcoin ETFs have dropped by 31.5% since their October peak.
  • Technical indicators suggest Bitcoin may enter a bear market if recovery does not occur soon.

Bitcoin’s price drop has placed the average purchase price of Bitcoin ETFs underwater. This comes after a significant outflow of funds from the funds in recent weeks. According to Alex Thorn, head of research at Galaxy, Bitcoin ETFs are now facing losses due to these outflows, which hit $2.8 billion in just two weeks. The funds hold substantial amounts of Bitcoin, but the current market downturn has left their investments below their average cost basis.

Bitcoin ETFs Struggling as Market Falls

The U.S. Bitcoin ETFs now hold approximately $113 billion in assets under management. The funds collectively possess around 1.28 million Bitcoin, implying an average cost basis of $87,830 per Bitcoin. As Bitcoin’s price recently dropped by 11%, falling from $84,000 to $74,600, these Bitcoin ETFs are now underwater, with purchases made at a higher price than their current value.

This downturn follows a troubling two-week period, in which Bitcoin ETFs recorded a $2.8 billion outflow. The ETFs lost $1.49 billion in one week, and another $1.32 billion the following week. These outflows suggest a lack of confidence from investors as Bitcoin’s price struggles.

Institutional Investors Hold Strong Despite Losses

Despite the ongoing downturn, institutional investors in Bitcoin ETFs are holding their positions. Thorn noted that the cumulative inflows into Bitcoin ETFs have only decreased by 12% from their peak, whereas Bitcoin itself has seen a larger drop of 38%. Even though the total assets under management for Bitcoin ETFs have declined by 31.5% from their October peak of $165 billion, institutional investors have been holding on to their assets.

This indicates that while the Bitcoin ETF market has experienced significant outflows, many institutional investors remain committed to their holdings, reflecting their long-term view on the asset.

Bear Market Concerns Grow as Recovery Stalls

The recent drop in Bitcoin’s price has raised concerns about the potential for a bear market. Nick Ruck, director at LVRG Research, warned that if Bitcoin does not recover soon, it could enter a fully-fledged bear market. “BTC may enter into a bear market if it continues to drop further,” Ruck said, referencing technical indicators that show long-term sell pressure.

The ongoing decline is also compounded by broader market uncertainty. Geopolitical tensions and the struggles of the U.S. economy, including rising unemployment and inflation, have contributed to the sell-off in crypto markets.

The post Bitcoin ETFs Face Losses as $2.8B Exits Amid Price Drop appeared first on CoinCentral.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Young Republicans were more proud to be American under Obama than under Trump: data analyst

Young Republicans were more proud to be American under Obama than under Trump: data analyst

CNN data analyst Harry Enten sorts through revealing polls and surveys of American attitudes, looking for shifts, and his latest finding is an indictment of President
Share
Alternet2026/02/10 22:18
Vitalik Buterin Outlines Ethereum’s AI Framework, Pushes Back Against Solana’s Acceleration Thesis

Vitalik Buterin Outlines Ethereum’s AI Framework, Pushes Back Against Solana’s Acceleration Thesis

Ethereum co-founder Vitalik Buterin has reacted to Solana’s artificial general intelligence acceleration initiative. He did this through the establishment of his
Share
Thenewscrypto2026/02/10 18:40
Vitalik Buterin Reveals Ethereum’s Bold Plan to Stay Quantum-Secure and Simple!

Vitalik Buterin Reveals Ethereum’s Bold Plan to Stay Quantum-Secure and Simple!

Buterin unveils Ethereum’s strategy to tackle quantum security challenges ahead. Ethereum focuses on simplifying architecture while boosting security for users. Ethereum’s market stability grows as Buterin’s roadmap gains investor confidence. Ethereum founder Vitalik Buterin has unveiled his long-term vision for the blockchain, focusing on making Ethereum quantum-secure while maintaining its simplicity for users. Buterin presented his roadmap at the Japanese Developer Conference, and splits the future of Ethereum into three phases: short-term, mid-term, and long-term. Buterin’s most ambitious goal for Ethereum is to safeguard the blockchain against the threats posed by quantum computing.  The danger of such future developments is that the future may call into question the cryptographic security of most blockchain systems, and Ethereum will be able to remain ahead thanks to more sophisticated mathematical techniques to ensure the safety and integrity of its protocols. Buterin is committed to ensuring that Ethereum evolves in a way that not only meets today’s security challenges but also prepares for the unknowns of tomorrow. Also Read: Ethereum Giant The Ether Machine Takes Major Step Toward Going Public! However, in spite of such high ambitions, Buterin insisted that Ethereum also needed to simplify its architecture. An important aspect of this vision is to remove unnecessary complexity and make Ethereum more accessible and maintainable without losing its strong security capabilities. Security and simplicity form the core of Buterin’s strategy, as they guarantee that the users of Ethereum experience both security and smooth processes. Focus on Speed and Efficiency in the Short-Term In the short term, Buterin aims to enhance Ethereum’s transaction efficiency, a crucial step toward improving scalability and reducing transaction costs. These advantages are attributed to the fact that, within the mid-term, Ethereum is planning to enhance the speed of transactions in layer-2 networks. According to Butterin, this is part of Ethereum’s expansion, particularly because there is still more need to use blockchain technology to date. The other important aspect of Ethereum’s development is the layer-2 solutions. Buterin supports an approach in which the layer-2 networks are dependent on layer-1 to perform some essential tasks like data security, proof, and censorship resistance. This will enable the layer-2 systems of Ethereum to be concerned with verifying and sequencing transactions, which will improve the overall speed and efficiency of the network. Ethereum’s Market Stability Reflects Confidence in Long-Term Strategy Ethereum’s market performance has remained solid, with the cryptocurrency holding steady above $4,000. Currently priced at $4,492.15, Ethereum has experienced a slight 0.93% increase over the last 24 hours, while its trading volume surged by 8.72%, reaching $34.14 billion. These figures point to growing investor confidence in Ethereum’s long-term vision. The crypto community remains optimistic about Ethereum’s future, with many predicting the price could rise to $5,500 by mid-October. Buterin’s clear, forward-thinking strategy continues to build trust in Ethereum as one of the most secure and scalable blockchain platforms in the market. Also Read: Whales Dump 200 Million XRP in Just 2 Weeks – Is XRP’s Price on the Verge of Collapse? The post Vitalik Buterin Reveals Ethereum’s Bold Plan to Stay Quantum-Secure and Simple! appeared first on 36Crypto.
Share
Coinstats2025/09/18 01:22