Bitcoin ETF Investors Underwater as Market Pullback Bites

Bitcoin Pullback Puts ETF Investors in the Red

Bitcoin's rapid pullback has pushed the average US spot Bitcoin exchange-traded fund (ETF) investor into negative territory for the first time since the products launched. According to Glassnode analyst Sean Rose, the flow-weighted cost basis across all US Bitcoin ETFs sits near $89,600, a level Bitcoin dipped below on Tuesday, leaving the cohort underwater.

However, some early buyers, particularly those who entered when Bitcoin was between $40,000 and $70,000, still remain in profit. Vincent Liu, the chief investment officer at quantitative trading firm Kronos Research, noted that most ETF holders are long-term allocators, so being underwater doesn’t trigger quick exits.

In this risk-off environment, liquidity and macro conditions remain key drivers. Tight conditions can turn losses into downside pressure, while clear easing signals lift anchors. Spot Bitcoin and Ether ETFs are seeing withdrawals.

Bitcoin ETFs Bleed, Withdrawals Increase

US spot Bitcoin ETFs extended their multiday bleed on Monday, with a combined $254.6 million in outflows, according to data from Farside Investors. BlackRock’s iShares Bitcoin Trust (IBIT) posted $145.6 million in withdrawals, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw $12 million in outflows. ARK 21Shares Bitcoin ETF (ARKB) lost $29.7 million, and the Bitwise Bitcoin ETF (BITB) shed $9.5 million.

The figures mark the fifth straight day of outflows, beginning on Nov. 12, when Bitcoin ETFs shed $278.1 million, followed by an even steeper $866.7 million loss on Nov. 13, the second-worst session on record. Withdrawals continued on Nov. 14 with $492.1 million exiting the products.

Spot Ether (ETH) ETFs also continued to face steep withdrawals on Monday, recording a combined $182.7 million in outflows, according to data from Farside Investors. The heaviest hit came from BlackRock’s iShares Ethereum Trust ETF (ETHA), which saw $193 million exit in a single session.

Market Outlook and Potential Triggers

Liu indicated that a shift will come with clear disinflation, labor softening without breaking, and central bank communication that clearly tilts toward easing rather than "higher for longer." Once those signals align, liquidity expectations improve, volatility fades, and flows typically rotate back.

Solana ETFs Extend Inflow Streak

Meanwhile, Solana (SOL) ETFs continued to defy the broader market downturn, logging another day of positive inflows on Monday. The Bitwise Solana Staking ETF (BSOL) pulled in $7.3 million in new capital, while the Grayscale Solana Trust ETF (GSOL) added a modest $0.9 million.

The funds have posted inflows every day since their launch in late October, bringing cumulative net inflows across BSOL, VSOL and GSOL to roughly $390 million.