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He emphasized that buyers of spot Bitcoin ETFs in the United States are mainly investors who expect to provide stable and long-term demand for the leading digital currency. However, the data shows that these players are now experiencing increasing unrealized losses, with no clear signs of new demand coming in to reverse this trend.
This context shows the slow decline of Bitcoin, revealing a flaw at the heart of the post-ETF era.
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ETF Investors Suffer Losses as Bitcoin Price Falls Below $84,000
On-chain data from GlassNode reveals that the average entry price for Bitcoin spot fund investors in the US is around $84,100 per BTC.
Bitcoin is trading near $78,657 at the time of writing, after just below $75,000 over the weekend, and this category of investors is facing paper losses of between 8% and 9%.
Major investors who entered via structured products are subject to a quiet but declining decline A constant test of conviction.
This underwater situation is already reflected in The rate of outflows accelerates. After strong flows in early January, the momentum has changed abruptly. In the past two weeks alone, approximately $2.8 billion to $3 billion has been withdrawn from Bitcoin spot funds in the United States.
Weekly recoveries of $1.49 billion and $1.32 billion pushed cumulative flows into negative territory. This removed a large part of the optimism that characterized the beginning of the year.
Daily flow data shows pressure, with net flows dominating the trading sessions, including -$708.7 million on January 21, -$817.8 million on January 29 and -$509.7 million on January 30.
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Concentrate heavy sales in the largest products, where you export them IPIT from BlackRockwhich alone saw outflows of about $528.0 million on January 30, in addition to Fidelity’s FBTC.
February 2 saw a one-day inflow of nearly $419.8 million, providing only temporary relief in an otherwise persistent downward trend.
“Combined ETF flows are not buying the fund, and net institutional demand is coming almost entirely from a shrinking pool of Treasury-style buyers who still have balance sheet capacity,” analyst Jamie Coates said.
Jamie stated that this is unsustainable under sustained pressure, and that a solid bottom for Bitcoin will likely require these parties to return their positions, not just slow down sales.
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Fading demand and declining macroeconomic narratives leave Bitcoin ETFs in limbo
The crux of the sale is a decrease in demand, with Bitcoin falling more than 35% from its 2025 peak near $126,000. Likewise, the macroeconomic narratives that once supported high prices are fading.
Analysts point to the decrease in liquidity, the tightening of financial conditions, and the apparent disconnection of Bitcoin from traditional hedges.
Unlike previous sessions, the asset did not rise on a weaker dollar or rising geopolitical risks, leaving it directionless as speculative interest waned.
This is not the first time that ETF investors have slipped into the red. In November 2025, when Bitcoin briefly fell below the then average cost of index funds near $89,600, analysts indicated a similar stress test.
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The difference now is in the tone. Instead of panic selling, the market is apathetic. Investors are not facing large-scale exits. Instead, they don’t buy.
Investors appear to be more selective, waiting for clearer indications on macroeconomic conditions, liquidity, and whether Bitcoin can sustainably maintain levels above previous highs before increasing their exposure, Bloomberg said, citing Sean Rose, senior analyst at GlassNode.
He noted that the slowdown in asset accumulation among public and private companies reflects the trend in ETFs.
Without a new catalyst, be it a renewed influx of ETFs, ease of liquidity, or a compelling new narrative, this feedback loop could continue. This can lead to price drops discouraging buyers, the weakness of capital side, and a further loss of conviction.
However, US Bitcoin-linked ETFs collectively hold an estimated $104.48 billion in assets, representing a large long-term capital base.
