ETF Investors Held Firm in BTC Crash, HOLDlers Had Paper Hands: Analyst
**Bitcoin ETFs Show Resilience With Less Than $1 Billion in Outflows After October Crash**
Bitcoin exchange-traded funds (ETFs) weathered the recent historic crypto market crash with less than $1 billion in outflows, according to senior Bloomberg ETF analyst Eric Balchunas. Despite a sharp 20% dip in Bitcoin’s price in October, the ETFs managed to break a six-day outflow streak on Thursday, recording approximately $240 million in capital inflows.
Balchunas shared a chart showing net outflows of about $722 million over the past month but emphasized the relative strength of ETF investors. “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,’” he commented. This suggests that large-scale selling pressure came from within the Bitcoin community, rather than traditional ETF investors.
**Whales and Long-Term Holders Led the Selloff**
The major sellers during October’s downturn were Bitcoin whales and long-term holders. These investors offloaded roughly 400,000 BTC—worth over $41.3 billion at the time—according to CryptoQuant analyst Maartunn. Many sought to take profits as Bitcoin’s price surged toward the $100,000 level earlier in the month.
The crash also triggered the largest crypto liquidation event in history, wiping out about $20 billion in leveraged bets within just 24 hours. This severe correction forced several investment companies to revise their Bitcoin price forecasts downward.
**ETF Investors Signal Growing Conviction in Bitcoin**
Despite this market turmoil, ETF investors have shown remarkable interest and resilience. Nearly half of ETF investors surveyed by Charles Schwab in July and August indicated plans to purchase crypto ETFs, surpassing interest in 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,” noted author Shanaka Anslem Perera on X, highlighting the steady approach of institutional investors.
**ETFs Help Stabilize Bitcoin’s Price**
Analysts say capital inflows into Bitcoin ETFs have dampened the price volatility of BTC. These passive investment flows create a price floor by drawing funds from traditional investors, supporting greater market stability.
This trend signals not only market maturation for Bitcoin but also a growing conviction among ETF holders in Bitcoin’s long-term prospects—as both a store of value and a macroeconomic asset.
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*Related: [Bitcoin bulls retreat as spot BTC ETF outflows deepen and macro fears grow]*
*Are you considering adding Bitcoin ETFs to your portfolio? Share your thoughts in the comments below!*
https://bitcoinethereumnews.com/bitcoin/etf-investors-held-firm-in-btc-crash-holdlers-had-paper-hands-analyst/
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