Record Drop in US Spot Bitcoin ETF Balances: 100,300 BTC Decrease

Sharp Decline in ETF Balances According to Glassnode data, US spot Bitcoin exchange-traded funds (ETFs) are recording the largest balance decline of the current market cycle since reaching peak levels in early October.
Since that peak, ETF balances have decreased by 100,300 BTC, bringing total holdings down to 1.26 million BTC.
This contraction is considered a result of sustained net outflows from spot ETFs.
Data from SoSoValue reveals that $1.6 billion was withdrawn from these products in January alone.
The monthly outflow streak, which began in November 2025 and extended into 2026, is cited as a primary factor increasing market uncertainty.
Investor Costs and Loss Ratios In addition to ETF outflows, unrealized losses among investors are drawing significant attention.
Glassnode data indicates that the average cost basis for US spot Bitcoin ETF investors stands at approximately $83,980.
With Bitcoin trading around $67,349, this investor group is currently facing paper losses of roughly 20%.
Experts point out that while the ETF mechanism acts as a catalyst during bullish periods, it can exacerbate downward pressure during outflow phases.
Arthur Hayes noted that hedging activities by institutional dealers have reinforced the selling pressure on BTC prices.
Long-Term Outlook and Institutional Interest With $173 million exiting digital asset funds last week, the market has closed its fourth consecutive week in the red.
Total outflows have reached $3.7 billion, while cumulative net inflows have dropped to $53 billion from a peak of $63 billion in October 2025.
Bloomberg senior ETF analyst Eric Balchunas remains optimistic despite the current figures.
Balchunas emphasized that the performance remains well above the initial first-year inflow estimates of $5-15 billion, highlighting that the relationship between Bitcoin and Wall Street generally remains on a positive trajectory.