 ▲ Bitcoin (BTC), ETF/ChatGPT-generated image |
Investors in spot Bitcoin ETFs have demonstrated strong commitment to long-term holding, recording net outflows of only $6.5 billion despite a steep market downturn.
On February 27, cryptocurrency-focused media outlet reported that spot Bitcoin ETF investors have shown a mature response amid volatility that saw Bitcoin prices plunge by 50%. Since reaching an all-time high of $126,200 in early October 2025, total outflows from the funds have amounted to just $6.5 billion. Compared to the $55 billion in total inflows since entering the market in the first quarter of 2024, this figure is relatively minor and underscores institutional investors’ long-term conviction.
Nate Geraci, president of Novadius Wealth, praised the so-called “diamond hands” attitude of spot Bitcoin ETF investors on X (formerly Twitter). Geraci noted that while $6.5 billion may appear significant in absolute terms, it represents only about 12% of total inflows, adding that most investors have used the downturn as a buying opportunity rather than panic-selling. In particular, products from major asset managers such as BlackRock’s Bitcoin ETF IBIT and Fidelity helped maintain market stability by absorbing early selling pressure from the Grayscale Bitcoin Trust.
Although capital flows into spot Bitcoin ETFs have been somewhat weak over the past four months, signs of a rebound are emerging. November 2025 saw net outflows of $3.48 billion, followed by $1.09 billion in December and $1.61 billion in January 2026. As of February, total net outflows stand at $179 million, but more than $1 billion has flowed back into the funds over the past three consecutive days, increasing the likelihood of a shift to net monthly inflows.
Eric Balchunas, Senior ETF Analyst at Bloomberg, emphasized that the key theme during this downturn is not the scale of outflows but the resilience of new investors. “It’s remarkable that most investors are holding firm even as prices are cut in half,” he said, directly countering claims that digital assets are suffering due to exposure to traditional financial markets. He added that the $55 billion in new capital that has entered through U.S. spot Bitcoin ETFs has further strengthened the fundamentals of the crypto market.
*Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.*