ETF Investors Held Firm in BTC Crash, HOLDlers Had Paper Hands: Analyst


Bitcoin exchange-traded funds (ETFs) saw less than $1 billion in outflows following the historic crypto market crash in October that caused a 20% decline in BTC’s price, according to senior Bloomberg ETF analyst Eric Balchunas.
The ETFs broke a six-day outflow streak on Thursday, recording about $240 million in capital inflows, Balchunas said, sharing a chart that showed net outflows of about $722 million over the past month.
“Told y’all the ETF-using boomers are no joke. So who’s been selling? To quote that horror movie, ‘Ma’am, the call is coming from inside the house,’” Balchunas said.
The comments refer to the 400,000 BTC sold by Bitcoin whales and long-term BTC holders, who cashed in around the $100,000 price level during October.
October’s historic market crash wiped away about $20 billion in leveraged crypto bets within 24 hours, marking the worst crypto liquidation event in history and denting crypto prices to the point of forcing downward revisions of price forecasts from several investment companies.
Related: Bitcoin bulls retreat as spot BTC ETF outflows deepen and macro fears grow
Long-term HODLers are selling while ETF investors show interest in crypto
Long-term Bitcoin holders, those who have held BTC for 155 days or more, dumped 405,000 BTC, valued at over $41.3 billion at the time of this writing, according to CryptoQuant analyst Maartunn.
Nearly half of all ETF investors surveyed by brokerage and financial services company Charles Schwab in July and August said they plan to purchase crypto ETFs, beating out emerging market equities, commodities and real assets.
“ETFs are slow money. RIAs, pensions, and 401(k)s buy rules, not rumors. They rebalance, they average in. Traders puke, basis traders unwind, perps cascade,” author Shanaka Anslem Perera wrote on X.
Capital inflows into ETFs have damped Bitcoin’s price volatility, helping to create a floor that supports prices by pulling in funds from traditional investors, analysts say.
These passive investment flows into BTC ETFs signal market maturation and growing conviction among Bitcoin ETF holders in Bitcoin’s long-term price appreciation and its use cases as a store of value or a macroeconomic asset.
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