Investors in spot Bitcoin ETFs are now sitting on significant paper losses, raising the possibility of redemptions if the crypto market remains weak.
Bitcoin’s recent slide to $76,366 has left holders of U.S.-listed spot ETFs down roughly 15% on average. According to Bianco Research and 10x Research, these investors bought BTC at around $90,200, creating an unrealized loss of about $13,400 per coin.
Such losses could push short-term traders and speculators to redeem ETF shares, potentially amplifying bearish pressures. ETF demand has already softened since the October 8 crash, which social media largely attributes to Binance, the largest exchange by volume and open interest. January marked the third consecutive month of net outflows—the first three-month streak since these ETFs launched. Over this period, the 11 spot Bitcoin ETFs saw a combined net outflow of $6.18 billion, according to SoSoValue.
A deepening bear market could spark broader capitulation, with long-term holders liquidating and volumes spiking, a pattern often seen at peak bearish phases.
Analysts note, however, that institutional ETF capital is generally “sticky” and intended for long-term holding, making a full-scale sell-off unlikely.
Share this content:
