Data shows Bitcoin spot exchange-traded funds (ETFs) are down $3.29 billion from their all-time high (ATH) after the latest wave of outflows.
Despite them being new, these investment vehicles have grown into one of the cornerstones of the market, tapping into the demand from traditional investors who were previously reluctant to trade on-chain. Given the relevance of the spot ETFs, the trend in their holdings can be worth keeping an eye on, as it may reflect the sentiment among institutional entities. One way to do so is by measuring where these funds stand relative to their ATH.
Below is the chart shared by Maartunn that shows how the drawdown from the ATH currently looks for the Bitcoin spot ETFs:
From the graph, it’s visible that the Bitcoin spot ETFs saw their USD holdings reach an ATH in October, but since then, they have been facing a sustained drawdown. Last month, the drawdown was still limited, but the outflows accompanying the price crash have meant ETF holdings are now significantly down compared to the peak.
More specifically, spot ETF holdings are currently down a whopping $3.29 billion, the second-largest drawdown since last year’s launch. The only phase during which the metric’s value was higher was the bearish period between February and April. Back then, ETFs saw a peak drawdown of $4.8 billion. The latest decline in ETF holdings is still notably below this mark, so it only remains to be seen whether the drawdown will deepen in the near future.
Bitcoin slipped under $90,000 just earlier, but the coin has since bounced back to $91,500.
