Bitcoin ETFs Face Their Toughest Test Yet as BTC Slides Under $73K

Bitcoin ETFs face their toughest period as BTC drops below $73K, recording the largest paper losses since launch while outflows stay limited.

Bitcoin exchange-traded funds in the United States are facing sustained pressure as Bitcoin trades below $73,000.

Prices have declined for four months, yet ETF holders continue to maintain positions. Market data shows losses have grown, while outflows remain smaller than earlier inflows.

ETF Holdings Remain Stable Despite Ongoing Price Decline

US-listed spot Bitcoin ETFs are recording their deepest paper losses since their launch in January 2024.

Bitcoin trading below $73,000 has placed many investors underwater, yet selling activity remains limited.

Analysts say this behavior reflects measured positioning rather than panic-driven exits.

ETF analyst James Seyffart said, “The ETFs are still hanging in there pretty good,” while noting losses near 42%.

He added that current outflows are modest when compared with inflows recorded during earlier market highs. These comments point to relative stability among holders.

Data from Farside Investors shows net inflows previously reached about $62.11 billion before the downturn.

That figure has declined to around $55 billion. Seyffart described the remaining balance as “not too shabby,” indicating resilience during extended weakness.

Consecutive Outflows Mark a Rare Market Phase

Market observers have noted three straight months of net outflows from spot Bitcoin ETFs.

This pattern has not been seen before since the products launched. The trend coincides with Bitcoin’s 24.73% price drop over the past 30 days.

Crypto analytics account Rand stated that this is the first occurrence of such sustained ETF outflows.

However, the scale of withdrawals remains moderate when viewed against total assets held. This suggests investors are adjusting exposure gradually.

Investment researcher Jim Bianco said the average ETF holder is about 24% underwater.

He noted that holders are “collectively holding,” which signals reduced trading activity. This behavior contrasts with sharper reactions seen in earlier market cycles.

Related Reading: Veteran Trader Peter Brandt Lowers Bitcoin Crash Target as BTC Sell-Off Deepens

Long-Term Performance Still Shapes Market Context

Some analysts are placing the current decline within a broader performance range.

ETF analyst Eric Balchunas compared Bitcoin’s gains since 2022 with other assets. He said Bitcoin rose over 400%, while gold gained 177% and silver climbed 350%.

Balchunas said, “Bitcoin spanked everything so bad in ’23 and ’24,” and added that other assets still trail despite strong years.

His remarks focus on comparative performance rather than near-term price moves.

Meanwhile, CryptoQuant CEO Ki Young Ju said that “every Bitcoin analyst is now bearish.” This comment reflects prevailing market sentiment. 

However, ETF holding data shows investors continue to keep positions, even as prices remain under pressure.

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