BTC News: The Average ETF Investor Is Now At A Loss As Bitcoin Price Slides Further

Bitcoin’s price has fallen below $89,600, leaving average ETF investors underwater while Solana ETFs continue steady inflows.

The average US spot Bitcoin ETF investor is now underwater as Bitcoin fell below $89,600. This marks the first time since these investment products launched that typical holders are in the red.

The flow-weighted cost basis across all US Bitcoin ETFs is near $89,600, according to Glassnode analyst Sean Rose. 

Bitcoin traded slightly above this threshold at $91,261 at the time of reporting. Meanwhile, early investors who purchased Bitcoin between $40,000 and $70,000 continue to hold profits.

Bitcoin ETFs Face Heavy Outflows

US spot Bitcoin ETFs have experienced massive withdrawals over the past five days. On November 12, these products recorded $278.1 million in outflows. The following day, November 13, saw $866.7 million exit in the second-largest single-day outflow on record. 

Withdrawals continued on November 14 with $492.1 million in redemptions.

On Monday, November 18, combined outflows across all Bitcoin ETFs reached $254.6 million according to Farside Investors data. 

Bitcoin recently fell below the average investor’s cost basis | source: X

BlackRock’s iShares Bitcoin Trust (IBIT) posted $145.6 million in withdrawals. Fidelity’s Wise Origin Bitcoin Fund (FBTC) lost $12 million. ARK 21Shares Bitcoin ETF (ARKB) shed $29.7 million while Bitwise Bitcoin ETF (BITB) dropped $9.5 million.

Spot Ether (ETH) ETFs recorded a combined $182.7 million in outflows on Monday. BlackRock’s iShares Ethereum Trust ETF (ETHA) experienced the largest single-session withdrawal of $193 million.

Solana ETFs Defy Market Downturn

While Bitcoin and Ether ETFs struggled, Solana (SOL) ETFs continued to see positive inflows. The Bitwise Solana Staking ETF (BSOL) attracted $7.3 million in new capital on Monday while the Grayscale Solana Trust ETF (GSOL) added $0.9 million.

Since their launch in late October, Solana ETFs have posted net inflows every trading day. Cumulative inflows across BSOL, GSOL and VSOL now total approximately $390 million.

Solana ETFs have been outperforming Bitcoin and ETH funds | source: X

This sustained investment shows a strong interest in Solana despite the general market downturn. Analysts now suggest that investors may see Solana as an alternative opportunity in the crypto market.

In all, market sentiment remains risk-off and is being influenced by macroeconomic factors like liquidity, inflation data and central bank policy. Analysts believe that a combination of easing signals and improved liquidity could reverse the outflows and support further investment.

Related Reading: Bitcoin Drops Below $90K as BitMine and Bitwise Execs See Bottom This Week

General Market Implications

The current trends show a divergence in investor behaviour. Bitcoin and Ether ETFs are currently facing withdrawals, which shows that there is some investor caution in response to price declines. 

Meanwhile, Solana ETFs continue to attract capital and show that there is strong investor appetite for alternative digital assets.

This divergence may affect the overall market liquidity and trading patterns. Bitcoin and Ether ETFs are more sensitive to macroeconomic signals while Solana ETFs appear driven by growth narratives and staking opportunities.

Outlook for Bitcoin and Crypto ETFs

Bitcoin ETFs are still under pressure, but long-term holders are still a major source of market stability. Ether ETFs are facing similar challenges, even though the market is watching for signals from monetary authorities.

Solana ETFs are showing a growing trend toward diversified exposure in the crypto space. 

Continued adoption of these ETFs may support liquidity and offer investors extra ways to participate.

All of the above being said, Investors should remain vigilant and monitor flows carefully. Market volatility will likely continue from here, but informed decision-making can be an asset in such trying times.

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