Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) have shown strength amid the crypto market’s correction and the flagship crypto’s latest performance. Some experts have praised investors’ resilience, suggesting that the “real story” is not in the recent outflows.
ETFs Investors Hold Strong Despite Market Downturn
On Thursday, Nate Geraci, co-founder of the ETF Institute, affirmed that Bitcoin ETF investors have “largely displayed diamond hands” during the recent crypto market downturn.
The flagship crypto has seen a 48.2% correction from its October 6, 2025, all-time high (ATH), recording five consecutive months of strong bleeding after the October 10 market crash.
Since then, spot BTC ETFs have seen about $6.5 billion in outflows, the expert observed, which he considers a “drop in the bucket” compared to the $55 billion in cumulative total net inflows that the category has seen since launching in January 2024.
It’s worth noting that crypto-based investment products have seen five weeks of outflows this year, with Bitcoin having the weakest sentiment among major assets amid the negative market sentiment of the past month.
According to SoSoValue data, BTC funds have recorded $3.81 billion in net outflows since January 23, starting the week with $203.82 million in outflows on Monday.
However, Geraci highlighted potential renewed demand for the investment products as the category sees a three-day streak of consistent inflows. Notably, Bitcoin ETFs have seen over $1 billion in inflows over the past three days, setting the stage for their potential biggest week since mid-January.
The ETF expert emphasized that 50% drawdowns “are a walk in the park for long-time BTC investors,” but observed that newer ETF investors also appear unfazed by the current market conditions.
“Not first time btc has experienced 50% decline & likely won’t be the last. ETF investors clearly aren’t panicking, though. Apparently buying the dip,” he wrote on X.
Bitcoin ETFs Strength Is The ‘Real Story’
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas backed Geraci’s comment, praising the remarkable performance of spot Bitcoin ETFs over the past two years.
“As an ETF watcher, you know just how absurd this strength amid a 50% drawdown,” Balchunas stated. “This is the real story, vs focusing on the $6b that came out, which most stories do.”
“Further, the narrative that crypto is ‘paying the price’ for getting financialized is absurd. $55b in net new cash in two years is the opposite of paying the price,” he added on X.
In a recent interview, the senior analyst observed that the amount of Bitcoin held by ETFs is only down around 6% despite the market pullback. He noted that these types of corrections happen to every asset, including bonds and stocks, before recovering.
Stocks have the same thing. Every time stocks go down, I remind myself and then other people that stocks have a 100% perfect record of coming back to hit all-time highs from a downturn. So, why would I worry that much, right?
Balchunas affirmed that these assets can have “really horrible streaks, but then when they come back around, the flows come back.” He concluded that the price volatility and the negative market sentiment are “the cost of the holy grail returns that most people have gotten.”
