Bitcoin ETF Investors Average 15% Loss… “Concerns Over Further Selling Pressure”

Uk Jin

Summary

It reported that the average purchase price for spot Bitcoin ETF investors is $90,200, translating into about a 15% unrealized loss.
It said that across 11 spot Bitcoin ETFs from November through January, total net outflows of $6.18 billion were recorded, raising concerns over additional selling pressure.
It noted that while redemptions by short-term investors could act as downward pressure on the market, some analysis suggests the likelihood of large-scale capitulation selling is limited due to institutions’ longer-term investment horizon.

With Bitcoin (BTC) recently weakening, investors in U.S.-listed spot Bitcoin exchange-traded funds (ETFs) are seeing average losses of around 15%, according to a report.

On the 2nd (Korea time), CoinDesk, citing a report from 10x Research, said the average purchase price for Bitcoin ETF investors is $90,200, meaning they are currently sitting on unrealized losses of about 15%.

The report suggests additional selling pressure could emerge in ETF products. CoinDesk noted that “if ETF prices turn to a downtrend, short-term investors may move to redeem,” adding that “this could act as downward pressure on the market.”

Spot Bitcoin ETFs in fact recorded net monthly outflows for three consecutive months through January. According to ETF data analytics firm SosoValue, a total of $6.18 billion in net outflows occurred across 11 spot Bitcoin ETFs from November through January.

However, some analysis suggests that because institutional investors in ETFs tend to have a longer-term investment horizon, the likelihood of large-scale capitulation selling is limited.

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