Despite significant downturns in the market, investors in Bitcoin-based spot ETFs are observed to be holding their positions. Reports indicate a notable divergence between recent ETF inflows and outflows and the changes in the price of Bitcoin.
Stability in the Spot ETF Market
According to a graph shared by analyst Markus Thielen, the inflows into spot Bitcoin ETFs peaked at $61.8 billion by the end of 2025. However, following this peak, total inflows declined to $54.3 billion. During the same timeframe, the price of Bitcoin also experienced a significant drop, falling from approximately $125,000 to around $70,000.
Wall Street Investors’ Strategies
Amid widespread sell-offs and forced liquidations in the market, spot ETF investors notably maintained their positions, resulting in limited outflows. Thielen notes that investors in traditional finance typically regard these ETFs as long-term portfolio assets and tend to avoid making abrupt sales.
This relatively steady behavior within spot ETFs stands in contrast to the rapid liquidations seen across the wider market. It is suggested that the funds held in ETFs are typically more exposed, potentially delaying the liquidation process.
Thielen’s analysis underscores the point that this “persistent long-term stance” might indicate a delay in significant position closures by Wall Street.
Ongoing Market Risks
Recent months have seen a halt or even a reversal in inflows into ETFs, while losses in Bitcoin’s value continue. The analyst suggests that, unless new purchases commence or existing investors choose to sell, pressure on the market is likely to persist.
Alex Thorn, head of Galaxy Digital’s research division, anticipates further declines in Bitcoin’s value over the coming weeks and months, predicting that prices may approach long-term support levels historically seen as cycle bottoms.
Thielen suggests that the current resilient structure of ETFs is preventing the market from completely rebounding from recent downturns, thus delaying major rebalancing efforts.
These developments in spot Bitcoin ETFs present a noteworthy picture for those closely monitoring institutional investors’ behaviors and preferences in the crypto markets.
