Bitcoin Exchange Traded Funds [ETFs] are showing signs of stabilization after weeks of sustained outflows, but underlying data suggests investor positioning remains under pressure as price momentum weakens.
Cumulative ETF flows have rebounded by nearly $3 billion since late Februarypartially This reverses the roughly $9 billion outflow recorded from the October peak through early 2026.
Despite the recovery, net flows remain more than $6 billion lower since their peak, suggesting that selling pressure has subsided rather than completely reversed.
The shift comes as Bitcoin trades within a narrow range, reflecting a market that has yet to regain strong directional momentum.
Bitcoin ETFs are seeing a partial recovery in inflows after heavy outflows
This is evident from data from Bloomberg Intelligence charts, shared by analyst James Seyffart cumulative ETF flows peaked at $62.8 billion in October 2025Than dropped to about $56.2 billion at the end of March.
The recent inflows have helped narrow losses, leaving flows essentially flat since the start of the year. However, the broader trend suggests that while demand has returned somewhat, it has not been strong enough to offset the earlier outflows.
This pattern is consistent with a cooling market environment rather than a renewed accumulation phase.
The average cost basis over price keeps ETF investors underwater
At the same time, the ETF positioning data highlights a more challenging environment for investors.
The The average cost basis for Bitcoin ETF holders is estimated at approximately $82,000while Bitcoin is currently trading between around $63,000 and $69,000. This gap indicates that a large portion of ETF investors are still in the red.
What supports this is that the average unrealized losses in ETF investments have become negative Total losses are estimated at more than $14 billion.
Such positioning can influence market behavior because investors may be less inclined to aggressively add exposure while holding losing positions.
BTC’s consolidation reflects weak momentum
Price action reinforces this cautious outlook.
Bitcoin is consolidating in a range between approx $65,000 and $72,000 after a sharp correction earlier this year. At the time of writing, BTC is trading close $65,900close to the bottom of that range.
Momentum indicators also point to subdued conditions. The relative strength index [RSI] is around 40indicating weak buying pressure without entering deep oversold territory.
The combination of price action within a certain range and soft momentum indicates that while downside volatility has subsided, the market has not yet established a clear recovery trend.
Final summary
- Bitcoin ETF flows are stabilizing, but investors remain underwater due to the higher average cost basis.
- Price action within a certain range and weak momentum indicate that the market is still consolidating rather than recovering.