Bitcoin ETF Investors Hit Losses as Outflows Surge Across Major Funds

Andrew Chen
Bitcoin

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  • Bitcoin ETF investors are now underwater as BTC drops below the average cost basis.
  • Bitcoin and Ether funds have faced five straight days of significant outflows.
  • Solana ETFs continue to attract inflows despite broader market weakness.

Bitcoin’s sharp retreat has pushed the average U.S. spot Bitcoin ETF investor into negative territory for the first time since the products debuted. It’s a symbolic shift that reflects the market’s broader risk-off mood, where liquidity fears and macro uncertainty are driving investor behavior.

ETF Investors Fall Underwater

Data from Glassnode shows the flow-weighted cost basis for U.S. Bitcoin ETFs sits near $89,600—a level Bitcoin briefly slipped beneath this week. While many early buyers who entered between $40,000 and $70,000 remain comfortably in profit, the average investor is now holding at a loss.

Analysts note that these red numbers don’t automatically translate to panic selling. Most ETF holders are long-term allocators who tend to stay the course during volatility. Still, traders say the macro backdrop matters more than ever. Tight financial conditions can amplify losses, while any clear signs of easing could quickly reverse sentiment.

Five Days of Outflows Hit Bitcoin and Ether Funds

U.S. Bitcoin ETFs recorded another heavy day of withdrawals on Monday, shedding $254.6 million across major issuers. BlackRock’s IBIT led the outflows with $145.6 million, followed by declines at Fidelity, ARK 21Shares, and Bitwise. The withdrawals extend a five-day streak that began with a massive $866.7 million single-session outflow last week.

Ether ETFs are seeing similar pressure. The category lost $182.7 million on Monday alone, driven largely by a sharp $193 million withdrawal from BlackRock’s Ethereum product.

Ether ETFs see outflows. Source: Farside Investors

Solana ETFs Break From the Pack

One bright spot remains: Solana ETF demand. The category continued to attract fresh capital, with Bitwise’s BSOL pulling in $7.3 million on Monday. Combined Solana ETF inflows have now climbed to roughly $390 million since late October—an impressive contrast to the broader retreat across Bitcoin and Ether products.

Bitcoin ETF investors may be underwater for now, but analysts argue that the tide could shift quickly if macro conditions ease. Until then, inflows are sparse, volatility remains elevated, and Solana continues to stand out as the only ETF segment bucking the trend.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Bitcoin Correction Deepens, but Analysts Reject Cycle-Peak Fears

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