Average Bitcoin ETF buy underwater as investors pull $2.8B in 2 weeks

The average acquisition cost for investors in US spot Bitcoin Exchange-Traded Funds (ETFs) is now estimated to be significantly above the current market price, resulting in many recent buyers holding ‘underwater’ positions. Financial analysis indicates that the aggregate average purchase price for these products sits near the $63,000 mark. As Bitcoin’s spot price continues to struggle below this level, these paper losses have instigated a severe period of capital redemptions.

Over the past two weeks, the US Bitcoin ETF sector has experienced net outflows totaling approximately $2.8 billion. This timeframe marks the most substantial and sustained period of capital flight since the launch of the eleven spot Bitcoin ETFs in January 2024, signaling a sharp reversal from the accumulation trend observed earlier in the year.

These significant outflows are directly correlated with Bitcoin’s recent price slump, which saw the cryptocurrency fail to maintain momentum above the $65,000 level and briefly dip toward $59,000. Market observers attribute the selling pressure not only to price weakness but also to broader macroeconomic uncertainty, particularly sustained high interest rates, which reduce risk appetite for volatile assets.

Experts suggest that the bulk of the selling is coming from short-term holders and momentum traders who entered the market during the first quarter rally. For the ETF market structure to stabilize and for Bitcoin to resume a definitive upward trajectory, the market needs a significant and sustained return to positive net inflows.

Source: Average Bitcoin ETF buy underwater as investors pull $2.8B in 2 weeks