Bitcoin ETF investors hold strong despite a 25% BTC price drop: Heres why
- US Bitcoin ETFs collectively manage $115 billion in assets
- Since mid-February, Bitcoin ETFs have witnessed total outflows of nearly $5 billion
- Bitcoins decline continues as selling pressure intensifies
Even as Bitcoins price has tumbled 25% since the start of 2025, a staggering 95% of investors in US spot Bitcoin ETFs have held firm, resisting the urge to sell.
Despite market volatility and macroeconomic uncertainties, Bloomberg data suggests that the overwhelming majority of ETF holders remain unfazed, showcasing strong conviction in Bitcoins long-term potential.
Bitcoin ETFs show resilience
Bloomberg ETF strategist James Seyffart reported that inflows into Bitcoin ETFs have slightly declined to $35 billion, down from their $40 billion peak.
However, this still represents over 95% of investor capital remaining in ETFs, even as Bitcoins price struggles.
Institutional investors, including Goldman Sachs, continue to maintain significant exposure, with more than $1.5 billion invested in Bitcoin ETFs.
As of now, US Bitcoin ETFs collectively manage $115 billion in assets, underscoring the staying power of both retail and institutional investors despite the crypto market downturn.
Bitcoin ETF outflows persist
Since mid-February, Bitcoin ETFs have witnessed total outflows of nearly $5 billion.
On March 13 alone, outflows reached $135 million, according to Farside Investors.
However, BlackRocks iShares Bitcoin Trust (IBIT) remains an exception, attracting net inflows of $45.7 million amid the broader sell-off.
Bitcoin price faces pressure
Bitcoins decline continues as selling pressure intensifies due to macroeconomic concerns, including the Trump administrations ongoing tariff battle.
While BTC briefly surged above $84,000 following the release of US CPI data on Wednesday, it failed to hold above key resistance levels.
At press time, Bitcoin is trading at $81,953, down 1.56% on the day, with daily trading volume dropping 22% to under $30 billion.
According to Coinglass data, 24-hour liquidations have spiked to $75 million, with $52 million in long positions being wiped out.
CryptoQuant CEO Ki Young Ju noted that Bitcoin demand appears stuck at current levels but emphasized that it is still too early to call it a bear market.
Long-term Bitcoin holders continue accumulating
Despite Bitcoin ETF outflows, on-chain data reveals that long-term holders are accumulating more BTC.
Crypto analyst Ali Martinez reported that these investors have added over 131,000 BTC to their wallets in the past month alone, signaling confidence in Bitcoins long-term trajectory.
With Bitcoins price volatility and ETF outflows persisting, the coming weeks could be crucial in determining whether investors diamond hands will hold firm or if selling pressure will intensify.
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