Bitcoin ETFs barely flinch as BTC slides 40%, Bloomberg’s Eric Balchunas says
Despite Bitcoin dropping over 40%, spot Bitcoin ETF investors have only withdrawn 6.6% of assets, showing resilience.Summary
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas noted that while Bitcoin has fallen more than 40% from recent highs, spot Bitcoin ETF assets have only seen a 6.6% outflow, indicating that ETF investors are proving more resilient than expected. Balchunas attributes this stability to ETF buyers treating Bitcoin as a small "hot sauce" allocation (1%-2%) alongside traditional assets, benefiting from strong equity markets which cushion crypto losses. These investors are structurally different from crypto-native traders who face an "existential crisis mode" during such drawdowns. Balchunas drew a parallel to gold ETFs, which saw a larger asset outflow (one-third) during a similar 40% drop a decade ago, yet eventually rebuilt their holdings. He concluded that while volatility will persist, the ETF structure anchors Bitcoin within mainstream finance, suggesting these selloffs do not signal the end for the asset.
(Source：CoinDesk)