Bitcoin ETFs Drown in Red Ink: 62% Underwater as Price Plunges!

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Ah, the sweet serenade of the markets! On-chain data, that cold, unblinking eye of truth, reveals a spectacle most grim: the Bitcoin spot price has tumbled below the cost basis of nearly two-thirds of inflows into exchange-traded funds (ETFs). Behold, the mighty have fallen, and their pockets weep with the weight of losses!

62% of US Bitcoin Spot ETF Inflows Now Bathe in the Crimson Tide of Loss

In a fresh missive from the digital oracle, on-chain analyst Checkmate has unfurled a chart-a tapestry of woe-detailing the latest calamity befalling the Bitcoin spot ETFs. These ETFs, once hailed as the golden chariots of investment, allow the timid to dabble in the digital asset without soiling their hands with the actual coin. Available in many corners of the globe, it is the American variants that now command our attention. Approved in the frosty embrace of January 2024, these US BTC spot ETFs have strutted and fretted their hour upon the stage, basking in growth that seemed eternal. Yet, as all things must, their hubris has met its reckoning.

Lately, the winds have shifted, and the trend is one of net outflows-a bearish specter haunting the cryptocurrency sector. The past fortnight, in particular, has been a carnival of despair, with outflows reaching heights that would make even the most stoic investor blanch.

Behold, the chart of doom, posted by the analyst, which lays bare the weekly netflow trend and other metrics of misery:

From this graph, a tale of woe unfolds: Bitcoin spot ETFs have endured net outflow spikes of $1.33 billion and $1.49 billion in the last two weeks-the third and second largest such spasms in their storied history. As if this were not enough, Bitcoin itself has plummeted below the $80,000 threshold, now trading beneath the average cost basis of the spot ETFs (marked with a dashed line, a grim reminder of better days). Thus, the majority of capital ensconced in these funds now languishes in the red, a testament to the fickle nature of fortune.

In the netflow graph, Checkmate has graciously highlighted which weekly inflow spikes now lie submerged, their green hues a distant memory. It appears the last glimmers of hope date back to late 2024, with all subsequent spikes now drowning in the crimson tide. “If you assume a cost basis of inflows on the day they occurred, 62% of ETF inflows are now underwater,” the analyst notes, his tone as dry as a desert wind.

Thus far in the annals of BTC spot ETFs, holders have largely been spared the agony of significant losses, as Bitcoin’s ascent has been their shield. Even during a brief dip in mid-2024, the cryptocurrency never strayed too far below the cost basis. But now, the breach of the break-even level looms as a harbinger of a bear phase-a trial by fire for these investors, unaccustomed to such pain.

What fate awaits these beleaguered funds? Will the netflow turn, or will the red ink continue to flow? Only time, that implacable judge, will tell.

BTC Price

Bitcoin, once a titan, fell to $75,000 on Sunday, a fall from grace that would make Icarus blush. Yet, like a phoenix from the ashes, it has rebounded slightly to start the new week, now hovering around $77,800. But let us not be fooled-the scars remain, and the road to recovery is fraught with peril.

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2026-02-03 07:51