A recent analysis highlights Bitcoin-based spot ETF investors’ tenacity in maintaining their positions amid significant market downturns. Observations reveal a significant variation between ETF flows and Bitcoin‘s price fluctuations.
What is the current state of the Spot ETF market?
The data presented by analyst Markus Thielen shows that spot Bitcoin ETFs reached a peak inflow of $61.8 billion by late 2025. Following this surge, inflows retreated to $54.3 billion, coinciding with Bitcoin’s price plummeting from about $125,000 to $70,000.
Why are spot ETF investors holding steady?
Spot ETF investors have largely remained steadfast despite widespread market sell-offs and liquidations. Thielen points out that traditional finance investors view these ETFs as long-term assets, resisting the urge for hasty exits.
This stability contrasts starkly with broader market trends where rapid liquidations are prevalent. It’s believed that funds within ETFs are typically more deliberate in their investment decisions, slowing the liquidation process.
Thielen emphasizes that the consistent long-term perspective of ETF investors may be postponing significant actions from Wall Street.
Are there looming risks in the market?
Recent trends reveal stagnation or even withdrawal in ETF investments, while Bitcoin’s value suffers. With no influx of new purchases or a shift from current investors, the analyst warns that market pressures might sustain.
Alex Thorn, Galaxy Digital’s research head, foresees further depreciation in Bitcoin, suggesting a descent towards long-term support marks historically recognized as cycle troughs.
Thielen notes, “The current resilient structure of ETFs is preventing the market from completely rebounding from recent downturns, thus delaying major rebalancing efforts.”
Insights from spot Bitcoin ETFs provide a striking illustration of institutional investors’ behavior and inclinations in the crypto sphere. These trends will likely continue to shape the trajectory of the crypto market.
