Holders of spot Bitcoin ETFs, which reflect the demand from their investors, are currently under pressure compared with the average realized price, estimated at around $79,000.
This metric should be considered as an indication or a reference point. It cannot perfectly reflect the internal movements of investors within ETFs, but it still provides a reasonable estimate of the average cost basis.
With Bitcoin trading below $70,000, spot ETFs have experienced the largest drawdown since their all time high in terms of invested value in dollar terms.
More than $8.9 billion has flowed out of this market during the correction.
In particular, the iShares Bitcoin Trust (IBIT) from BlackRock has been the most impacted, with more than 42,000 BTC leaving the ETF since its peak holdings of over 806,000 BTC.
This represented a clear selling pressure during the correction.
The positive development is that the trend now appears to have stabilized, with the drawdown recovering to around −$7.8B from the ATH.
Stronger demand from ETF investors would help Bitcoin build a more solid base.
Written by Darkfost