Bitcoin ETF Holders Have Diamond Hands Despite 44% BTC Crash

Spot Bitcoin ETFs in the US have seen major outflows throughout January 2026. Despite this, the overall drop in BTC held by these ETFs is just 6.6% since October 2025. During the same period, BTC BTC $66 927 24h volatility: 9.1% Market cap: $1.34 T Vol. 24h: $112.73 B price crashed by 44%, showing that investors are holding with diamond hands.

Bitcoin ETF Holders Show Strength

The major outflows coming from spot Bitcoin ETFs have stirred up market sentiment. Extreme fear has taken hold across the crypto market, but ETF data suggests institutional holders are largely staying put.

Market enthusiast Shaun Edmonson has shared an interesting statistic. He noted that US spot Bitcoin ETFs held approximately 1,362,293 BTC as of Oct. 10, 2025. Since then, Bitcoin’s price has fallen about 44%. Despite the sharp drawdown, ETF holdings have declined by only 6.6%, indicating limited selling from these vehicles.

The drop in ETF Bitcoin balances is relatively very small in comparison to the BTC price drop. This suggests that institutional investors are maintaining long-term positions rather than capitulating during the downturn.

Eric Balchunas, the senior ETF analyst for Bloomberg has validated this. Furthermore, he shared a historical context by comparing the Bitcoin ETF outflows with gold ETF outflows.

Balchunas wrote that the SPDR Gold Shares (GLD) have faced several difficult periods during their history of the past 22 years. At one stage, the gold ETF fell about 40% within six months, while roughly 33% of its assets exited through outflows. Despite that, GLD has since attracted nearly $30 billion in new inflows.

Thus, he pointed out that with only 6-7% of assets leaving Bitcoin ETFs, despite this massive BTC price crash, it shows major strength.

BTC Crash Tests Resolve of ETFs

According to Galaxy Research data, the average cost basis of spot Bitcoin ETF holders is $84,099. With BTC price falling under $70,000 at press time, the ETFs are deep underwater.

Bitcoin ETF outflows average cost basis | Source: Galaxy Research

Another Bloomberg ETF analyst, James Seyffart, said Bitcoin ETFs have shown resilience despite recent market weakness.

In a post on X, Seyffart noted that spot Bitcoin ETFs have recorded more than $7 billion in outflows since Oct. 10, 2025, when market conditions began to deteriorate. However, he added that the pullback remains relatively modest when viewed against the roughly $63 billion in inflows the funds attracted at their peak.

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