Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) have shown strength amid the crypto market correction and the latest performance of the flagship crypto. Some experts have praised the resilience of investors, suggesting the “real story” is not in the recent outflows.
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ETFs Investors hold firm despite market decline
On Thursday, Nate Geraci, co-founder of the ETF Institute, said confirmed that Bitcoin ETF investors have “largely shown diamond hands” during the recent crypto market downturn.
The flagship crypto has seen a 48.2% correction from its all-time high (ATH) on October 6, 2025, recording five consecutive months of strong bleeding after the October 10 market crash.
Since then, spot BTC ETFs have seen outflows of about $6.5 billion, the expert noted, which he considers a “drop in the bucket” compared to the $55 billion in cumulative total net inflows the category has seen since its launch 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 last month’s negative market sentiment.
According to SoSoValue factsThe BTC funds have recorded net outflows of $3.81 billion since January 23, starting the week with an outflow of $203.82 million 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 inflows of more than $1 billion over the past three days, setting the stage for their potentially biggest week since mid-January.
The ETF expert emphasized that a 50% drop is “a walk in the park for experienced BTC investors,” but noted that newer ETF investors also seem unfazed by current market conditions.
“It’s not the first time BTC has experienced a 50% drop and it probably won’t be the last. ETF investors are clearly not panicking. Apparently they’re buying the dip,” he wrote on X.
The Power of Bitcoin ETFs is the ‘Real Story’
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas supported Geraci’s commentary, in which he praised the remarkable performance of spot Bitcoin ETFs over the past two years.
“As an ETF watcher you know how absurd this force is with a 50% drop,” says Balchunas. “This is the real story, instead of focusing on the $6 billion that came out, which is what most stories do.”
“Furthermore, the narrative that crypto is ‘paying the price’ for funding it is absurd. $55 billion in net new money in two years is the opposite of paying the price,” he added on X.
In a recent one interviewthe senior analyst noted that the amount of Bitcoin held by ETFs has only fallen by about 6% despite the market pullback. He noted that these types of corrections happen to any asset, including bonds and stocks, before it recovers.
Stocks have the same thing. Every time stocks fall, I remind myself and other people that stocks have a 100% perfect track record of reaching all-time highs after a recession. So why should I worry so much, right?
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Balchunas confirmed that these assets “can have really terrible consequences, but if they come back, the flows will come back.” He concluded that price volatility and negative market sentiment are “the price of the holy grail that most people have achieved.”
Featured image from Unsplash.com, chart from TradingView.com