U.S. spot Bitcoin exchange-traded funds (ETFs) have demonstrated notable resilience, with their Bitcoin holdings declining by only about 7% despite Bitcoin’s price falling over 50% from its October high. Bloomberg ETF analyst Eric Balchunas characterized the ETF holders, largely “boomers,” as having ‘diamond hands.’ While the price briefly touched $60,000, analysts remain cautiously watchful, with some expecting further downside before a definitive market bottom is established.
U.S. spot Bitcoin ETFs have shown significant resilience despite Bitcoin’s steep price decline since October. According to Bloomberg ETF analyst Eric Balchunas, the total Bitcoin held by these funds dropped by only about 7% even as the asset’s price fell more than 50%. Balchunas viewed the holders, who are primarily older investors, as ‘diamond hands.’
Before the October crash, U.S. spot Bitcoin ETFs held a record high of 1.362 million Bitcoin. That stash had decreased to 1.272 million Bitcoin by February 4.
A similar trend appeared in global Bitcoin ETF holdings, which include offerings in the U.S., E.U., and Asia. These worldwide holdings declined by just 72,400 Bitcoin, or 4.8%, over the same period.
Bitcoin’s price recently dropped to the $60,000 level for the first time since October 2024. It recovered slightly to approximately $65,000 at the time of reporting, though uncertainty about a final market bottom remained.
The latest price drop saw BlackRock’s iShares Bitcoin ETF post a record daily trading volume of $10 billion alongside a steep 13% decline. Balchunas described this activity as ‘brutal.’
Venture capital partner Chris Burniske noted the sub-$60,000 levels were of ‘interest’ but anticipated more downside. “Watching with interest, but not buying yet. Expect a bounce, but doubt the bloodletting is done,” he stated.
Analysts from Bitfinex echoed this caution while noting improved conditions for a potential bottom. They warned that without stronger spot demand and ETF inflows, any price recovery could be fragile.
