Bitcoin ETF investors have claimed to leave prices at their gross entry level, but a crypto executive claims new entities are lining up.
Bitcoin (BTC) institutional investors face “punishment” test as exchange-traded fund (ETF) holdings tumble with $6 billion shortfall
Key Points:
Bitcoin ETF investors now face gross losses on their holdings.
The “psychological pivot” point in net ETF holdings is down more than 8 percent from an all-time high.
New buyers of ETFs are on the horizon, claims crypto industry executive
The prices realized in the price of BTC near the ETF
Bitcoin ETF buyers are struggling to stay in the market on Wednesday in a new study from analytics platform Onchin.
The U.S. spot bitcoin ETF has seen $6 billion in outflows since net holdings hit an all-time high of $72.6 billion in October 2025.
With BTC price action seeing its current record high of $126,200 around the same time, its decline has hit particularly hard appetite.
Now, ETF investors face a fight to stay above their $86,600 realized value.
“After sitting on the price on the ETF, the marginal ETF holder no longer locks in profits to the seller, but an investor decides whether to endure the drawdown or exit the breakeven,” wrote cryptocurrency contributor I. Moreno.
“Historically, this zone acts as a psychological pivot: stopping above the price reinforces punishment and stabilizes stability, while persistent trading below it accelerates redemptions as investors lose their profits.”
It also charts ETF holdings down 8.4% since October, which in itself represents “the first significant stress test for the relatively fledgling investment since ETF adoption.”
Despite this and the associated erratic BTC price action, the ETF realizes that price volatility has stabilized over the past six months.
“What emerges is that despite the 6b reduction in overall flows (from ~72.6b to 66.5b), realized value has remained relatively stable and continues to trend higher,” Moreno added.
“In other words, ETF investors have already absorbed significant pressure (persistent outflow pressure suggests distributions from less committed capital, possibly late-cycle entrants or traders looking to lock in residual profits before deep losses).”
Bitwise Executive: ETF demand set for rebound
The second half of January has not been kind to the fortunes of ETFs.
Related: Wyckoff Analysis Points To Possible Sub-80k Bitcoin With Low Amidst Sticky Markets
The latest data from UK-based investment firm Farside Investors shows a characteristic flow of performance since January 16.
Only January 26 managed net inflows, totaling $6.8 million while three ETF products are still out of capital.
Regardless, Andre Dragoš, European head of research at crypto-asset manager Bitwise, sees potential future participation as a reason for optimism.
“Major U.S. wirehouses with 10,000 financial advisors continue to migrate to bitcoin ETFs. One of them just greenlit today,” he reported on Wednesday.
“You’re not even remotely fast…”
Dragosh said the entity’s identity was “internal intelligence” and could not be disclosed.
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