U.S. spot Ethereum ETF investors are showing resilience similar to their BTC counterparts, but they are reportedly under elevated market distress.
Amid the extended crypto rout, Bloomberg ETF analyst James Seyffart noted that ETH ETF buyers were down +40% from their cost basis of $3,520.
Source: Bloomberg
Can ETH ETF investors withstand the pressure?
However, Seyffart said that the investors have experienced similar market distress before in early 2025.
During the Trump tariff wars in Q1 2025, the ETH price dropped 60%, nearly similar to the recent drawdown to $1.8K.
Interestingly, ETH ETF holders hardly flinched at that time, recording only about $1 billion in outflows during the bearish sentiment in early 2025.
But will such resilience be replicated in 2026’s drawdown? According to Seyffar, ETH investors have seen overwhelming selling pressure but have stayed put.
He added,
Source: Bloomberg
BTC ETFs saw relatively little outflow over the same period.
However, the $4 billion in ETH ETF outflows may just be the beginning if the broader bear market plays out as past patterns suggest.
In the near term, Options traders were heavily hedging against downside risk to $1.6K and $1.9K, as shown by the top volumes (red) over the past 24 hours.
This underscored short-term caution ahead of U.S. macro data on the 13th of February.
Source: Arkham/Deribit
Assessing potential bottom
But the Singapore-based crypto trading desk noted that ETH could form a base ahead of Friday’s inflation print, which could set the tone for risk appetite and expectations of Fed rate cuts.
In a market update, the firm added,
At press time, ETH traded at $1.95K and could slip lower if the 2026 bear market follows the 2022 pattern.
If the close correlation with the 2022 trend holds, ETH may form a potential bottom in the $1000-$1200 range by the end of March 2026.
Source: ETH cycle bottom patterns (2022 vs 2026)
Final Thoughts
- ETH ETF holders were 43% underwater after the price slipped to $1.95K at the time of writing.
- Although the investors withstood similar market distress in early 2025, a further drawdown could strain them.
Source: https://ambcrypto.com/ethereum-etf-investors-face-43-losses-will-outflows-accelerate/


