Spot Bitcoin ETFs have demonstrated resilience even as the broader crypto market corrects and Bitcoin itself faces pressure. Some analysts point to investor fortitude, arguing that the “real story” lies beyond recent outflows.
ETF Investors Stay Firm During Downturn
Nate Geraci, co-founder of the ETF Institute, noted on Thursday that Bitcoin ETF investors have “largely displayed diamond hands” amid the recent slump. Bitcoin has fallen 48.2% from its all-time high on October 6, 2025, enduring five straight months of significant declines following a market crash on October 10.
Since that peak, spot Bitcoin ETFs have seen roughly $6.5 billion in outflows. Geraci views this as a “drop in the bucket” compared to the $55 billion in total net inflows these funds have attracted since their launch in January 2024.
Crypto investment products have experienced five weeks of outflows this year, with Bitcoin sentiment among the weakest of major assets. Data from SoSoValue shows BTC funds have recorded $3.81 billion in net outflows since January 23, starting this week with $203.82 million leaving on Monday.
However, Geraci highlighted a potential shift, pointing to a three-day streak of consistent inflows into the category. Bitcoin ETFs have attracted over $1 billion in the past three days, positioning them for their strongest week since mid-January.
He remarked that 50% drawdowns “are a walk in the park for long-time BTC investors,” and noted that newer ETF investors also seem unshaken by current conditions. “Not the first time btc has experienced a 50% decline & likely won’t be the last. ETF investors clearly aren’t panicking, though. Apparently buying the dip,” he posted on X.
ETF Strength Called the ‘Real Story’
Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, echoed Geraci’s sentiment, praising the notable performance of spot Bitcoin ETFs over the last two years. “As an ETF watcher, you know just how absurd this strength amid a 50% drawdown is,” Balchunas stated. “This is the real story, versus focusing on the $6b that came out, which most stories do.”
He added, “Further, the narrative that crypto is ‘paying the price’ for getting financialized is absurd. $55b in net new cash in two years is the opposite of paying the price.”
In a recent interview, Balchunas observed that the amount of Bitcoin held by ETFs is only down about 6% despite the market pullback. He noted that such corrections happen to all assets, including bonds and stocks, before they recover.
“Stocks have the same thing. Every time stocks go down, I remind myself and then other people that stocks have a 100% perfect record of coming back to hit all-time highs from a downturn. So, why would I worry that much, right?” he said.
Balchunas affirmed that these assets can have “really horrible streaks, but then when they come back around, the flows come back.” He concluded that the price volatility and negative sentiment are “the cost of the holy grail returns that most people have gotten.”
Frequently Asked Questions
Frequently Asked Questions About Bitcoin ETF Investor Resilience
Beginner Questions
Q1 What is a Bitcoin ETF
A A Bitcoin ETF is an investment fund that tracks the price of Bitcoin It trades on traditional stock exchanges like the SP 500 allowing people to invest in Bitcoins price movement without having to buy and store the cryptocurrency directly
Q2 What does investors are holding strong mean in this context
A It means that despite some price volatility or negative news a large majority of people who invested in these Bitcoin ETFs have chosen not to sell their shares They are maintaining their positions showing confidence in the longterm value
Q3 What is the significance of the 65 billion withdrawn since October 10th figure
A While 65 billion sounds like a lot its a relatively small percentage of the total assets these funds hold This figure highlights that outflows have been limited compared to the total investment underscoring the holding strong narrative
Q4 Why would investors hold strong instead of selling
A Common reasons include a longterm belief in Bitcoins value viewing price dips as buying opportunities using ETFs as a strategic portfolio diversifier or simply adopting a buy and hold strategy common in traditional investing
Intermediate Advanced Questions
Q5 How does this resilience compare to other ETF launches or crypto market cycles
A This level of stability is notable New financial products often see much higher volatility in flows as early speculators jump in and out The sustained holdings suggest these ETFs are attracting more longterm institutional and strategic investors rather than just shortterm traders
Q6 What are the main benefits of using a Bitcoin ETF over buying Bitcoin directly
A Key benefits include
Convenience Familiarity Bought through a regular brokerage account
Security No need to manage private keys or worry about crypto wallet security
Regulatory Oversight ETFs are regulated by bodies like the SEC
Tax Efficiency In some accounts they can offer tax advantages
Q7 What are common risks or problems with Bitcoin ETFs
A Risks include