Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) have shown strength during the correction of the crypto market and the recent performance of the crypto-flagship. Some experts have praised the resilience of investors, suggesting that the “real story” is not in the recent outflows.
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ETF Investors Hold Strong Despite Market Decline
On Thursday, Nate Geraci, founder of the ETF Institute, confirmed that Bitcoin ETF investors “showed a lot of diamond hands” during the recent crypto market downturn.
The flagship crypto has seen a 48.2% correction since the October 6, 2025, ATH, recording five consecutive months of strong bleeding after the October 10 market crash.
Since then, BTC ETFs have seen about $6.5 billion in outflows, the expert noted, which is not a “drop in the bucket” compared to the $55 billion total inflows the sector has seen since its launch in January 2024.
It is worth noting that crypto-based investment products have seen a five-week outage this year, with Bitcoin having a weak sentiment among major assets amid the negative market of the past month.
According to SoSoValue data, BTC funds recorded $3.81 billion in total outflows since January 23, starting the week with $203.82 million in outflows on Monday.
However, Geraci highlighted strong renewed demand for investment products as the sector saw a three-day streak of flat inflows. Notably, Bitcoin ETFs have seen inflows of more than $1 billion over the past three days, setting the stage for their biggest week since mid-January.
The ETF expert emphasized that the 50% drop is “a walk in the park for long-term BTC investors,” but noted that new ETF investors also seem indifferent to current market conditions.
“It’s not the first time btc has dropped 50% and it probably won’t be the last. ETF investors are clearly not panicking, though. They’re clearly buying the dip,” he wrote on X.
The Power of Bitcoin ETFs is ‘The Real Story’
Bloomberg Intelligence ETF Senior Analyst Eric Balchunas echoed Geraci’s comments, praising the impressive performance of Bitcoin ETFs over the past two years.
“As an ETF watcher, you know how absurd this momentum is in the midst of a 50 percent decline,” Balchunas said. “This is the real story, as opposed to focusing on the $6b exit, which is what most of the news is doing.”
“Furthermore, the argument that crypto is ‘paying a price’ for revenue is absurd. $55b in net new revenue in two years is the opposite of paying a price,” he added to X.
In a recent interview, a top analyst noted that the value of Bitcoin held by ETFs only fell by about 6% despite the market pullback. He noted that these types of adjustments occur on all assets, including bonds and stocks, prior to acquisition.
Stocks have the same thing. Every time stocks go down, I remind myself and other people that stocks have a perfect 100% track record of coming back to highs from a downturn. So, why should I be so concerned, right?
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Balchunas confirmed that these goods can have “really bad blows, but when they come back, the water comes back.” He concluded that price volatility and negative market sentiment are “the cost of the sacred return that many people have earned.”
Featured image from Unsplash.com, Chart from TradingView.com
