Bitcoin Spot ETF Holders Show Resilience During 50% Price Drops

Institutional investors maintain positions despite volatility, suggesting a shift toward a more stable, long-term holder base for cryptocurrency.

Apr. 5, 2026 at 7:37pm by Ben Kaplan

Got story updates? Submit your updates here. ›

Institutional investors have maintained their positions in spot bitcoin exchange-traded funds (ETFs) despite a price decline of approximately 50% that began in October 2025. Data indicates that professional investors are demonstrating a level of resilience often referred to as "diamond hands", challenging previous assumptions that institutional capital would exit quickly during periods of high volatility.

Why it matters

The scale of institutional adoption is reflected in the assets under management of leading funds, and the resilience of institutional holders suggests a potential for further growth in the cryptocurrency market. This trend also validates the digital gold thesis for many portfolio managers.

The details

According to Matt Hougan, Chief Investment Officer at Bitwise, spot bitcoin ETFs saw roughly $60 billion in net inflows from their launch in January 2024 through October 2025. Despite the subsequent 50% drop in bitcoin's price, these funds experienced less than $10 billion in outflows. Bloomberg Senior ETF Analyst James Seyffart noted that between a low point around April 2025 and October 10, 2025, approximately $25 billion to $30 billion flowed into bitcoin ETFs, and a period of outflows began on October 10, 2025, totaling about $9 billion. Seyffart observed that much of the capital that exited in October has since returned, with roughly $2 billion to $2.5 billion flowing back into the ETFs from February 23, 2026, through late March 2026.

  • In January 2024, spot bitcoin ETFs were launched.
  • Between January 2024 and October 2025, spot bitcoin ETFs saw roughly $60 billion in net inflows.
  • In October 2025, bitcoin's price declined by approximately 50%.
  • Between a low point around April 2025 and October 10, 2025, approximately $25 billion to $30 billion flowed into bitcoin ETFs.
  • On October 10, 2025, a period of outflows began, totaling about $9 billion.

The players

Matt Hougan

Chief Investment Officer at Bitwise.

James Seyffart

Bloomberg Senior ETF Analyst.

BlackRock's iShares Bitcoin Trust (IBIT)

Manages over $55 billion in assets.

Bitwise Bitcoin ETF (BITB)

Holds just under $3 billion in assets.

Morgan Stanley

Launched its own bitcoin ETF.

Got photos? Submit your photos here. ›

What they’re saying

“They are not 51% convinced bitcoin is a good idea. they are 80% or 90% convinced. Otherwise, they wouldn't take the risk”

— Matt Hougan, Bitwise CIO

“Between a low point around April 2025 and October 10, 2025, approximately $25 billion to $30 billion flowed into bitcoin ETFs. A period of outflows began on October 10, 2025, totaling about $9 billion.”

— James Seyffart, Bloomberg Senior ETF Analyst

What’s next

Analysts note that bitcoin's performance during periods of geopolitical stress has served to validate the digital gold thesis for many portfolio managers, which could lead to further institutional adoption.

The takeaway

The resilience of institutional holders of bitcoin spot ETFs during a 50% price drop suggests a shift toward a more stable, long-term holder base for the cryptocurrency, potentially paving the way for further growth in the market.