Paul Johnson The decline of Bitcoin below $89600 has left average Bitcoin ETF investors in losses for the first time since launch as market-wide outflows deepen while Solana ETFs continue to defy the trend with sustained inflows.
Bitcoin ETF Investors Face First Major Drawdown
The latest market downturn has pushed the average Bitcoin ETF investor into loss territory as Bitcoin tumbled below $89600. Data from on-chain analytics firms indicate that the average flow-weighted cost for spot Bitcoin ETFs in the United States now hovers near that level, turning the once-profitable investor base into one that is now underwater.
Since the introduction of spot Bitcoin ETFs earlier this year, these investment vehicles have been seen as a barometer for institutional confidence in digital assets. But the recent correction has exposed just how fragile that sentiment can be when macroeconomic pressures tighten. Bitcoin’s decline has also coincided with a consistent wave of withdrawals from major ETF issuers, reflecting broader market caution across the crypto sector.
According to Glassnode data shared with Bloomberg, the average entry point for Bitcoin ETF investors now sits above the current spot price. This means that unless Bitcoin recovers above $89600, many investors will continue holding unrealized losses. However, analysts point out that the investor base for these ETFs is largely composed of long-term allocators, meaning the decline is unlikely to cause a panic sell-off in the immediate term.
Massive Bitcoin ETF Outflows Continue
Market data reveals that Bitcoin ETFs recorded another heavy session of outflows at the start of the week. The collective withdrawal of $254.6 million on Monday marked the fifth consecutive day of net redemptions, extending a trend that began on November 12.
BlackRock’s iShares Bitcoin Trust (IBIT) led the outflows with $145.6 million leaving the fund, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw $12 million in redemptions. Other issuers such as ARK 21Shares and Bitwise also witnessed significant withdrawals, signaling growing investor unease amid falling crypto prices.
The sustained wave of redemptions follows two particularly severe sessions on November 13 and 14 when outflows totaled more than $1.3 billion combined. Analysts attribute this selling pressure to tightening liquidity conditions and concerns over global economic growth, which have caused risk assets to retreat across the board.
Despite the drawdown, institutional players remain cautious but not necessarily bearish. Market strategists suggest that investors are waiting for macroeconomic indicators particularly signs of disinflation and clearer signals from central banks—before reentering risk markets in size.
Ether ETFs Also Suffer Heavy Withdrawals
Ethereum-based ETFs have not been spared by the wave of redemptions. Data from Farside Investors shows that spot Ether ETFs registered $182.7 million in combined outflows on Monday. The steepest losses came from BlackRock’s iShares Ethereum Trust ETF (ETHA), which saw $193 million exit in a single session.
The outflow streak underscores how investor appetite for digital asset ETFs has cooled in recent weeks. Analysts note that this pullback is not unique to crypto, as traditional equities and commodities have also experienced risk-off sentiment. Until macroeconomic conditions ease, ETF investors may continue to scale back exposure.
Market experts argue that a potential recovery will depend on clear signals from the Federal Reserve and other central banks that tightening cycles are coming to an end. Once markets see evidence of easing and stable liquidity, capital could begin to flow back into crypto-linked ETFs.
Solana ETFs Defy Market Weakness with Sustained Inflows
While Bitcoin and Ether ETFs grapple with withdrawals, Solana-linked funds continue to shine. The Bitwise Solana Staking ETF (BSOL) brought in $7.3 million in fresh capital on Monday, while the Grayscale Solana Trust ETF (GSOL) attracted nearly $1 million. Together with other Solana products, cumulative inflows across the ecosystem have now reached close to $390 million since launch in late October.
The sustained inflows highlight the growing investor interest in Solana’s expanding ecosystem. Analysts credit this resilience to the network’s strong developer activity, rising DeFi participation, and expanding institutional integration. Solana ETFs appear to be benefiting from a narrative that positions the network as a high-performance alternative within the blockchain landscape.
Outlook: Liquidity and Patience Are Key
Despite the recent downturn, many experts emphasize that the broader ETF market remains structurally sound. Bitcoin ETFs, in particular, have become a key gateway for traditional investors to gain crypto exposure. As macro pressures begin to ease and liquidity conditions improve, capital inflows could return swiftly.
Market participants expect Bitcoin to regain momentum once the Federal Reserve signals a more accommodative stance. For now, ETF investors are expected to ride out short-term volatility as long-term conviction remains intact.
In contrast, Solana’s ongoing momentum demonstrates how investor attention is gradually diversifying beyond Bitcoin and Ethereum. If this trend continues, it may signal a shift in institutional priorities within the digital asset landscape.
While the near-term picture remains clouded by macro uncertainty, one thing is clear the Bitcoin ETF market has entered a new phase of maturity, where investors are learning to balance volatility with conviction.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
