Bitcoin Approaches ETF Average Cost as Inflows Slow and Price Stabilizes

Recent data indicates that the average cost basis for U.S. spot Bitcoin ETF deposits is clustering around $80,000, signaling that most ETF-held Bitcoin remains in unrealized profit. While daily net inflows have turned negative, long-term demand remains strong, suggesting institutional investors are continuing to hold Bitcoin rather than engage in speculative trading.

Key Takeaways

The average cost basis of U.S. spot Bitcoin ETFs is around $80,000, indicating unrealized profits for most holdings.
Daily net inflows saw a decline, recording $60.48 million in outflows on December 8, though total cumulative inflows are robust at $57.56 billion.
Bitcoin’s current trading price is approximately $90,700, close to the ETF cost basis, reflecting a necessary price consolidation period.
Institutional investment plays a significant role in shaping Bitcoin's market dynamics, emphasizing long-term holding.

Bitcoin trends

The Current State of Bitcoin ETF Holdings

New data from Glassnode reveals that the average cost basis for U.S. spot Bitcoin ETF deposits has reached around $80,000, with Grayscale’s figures slightly above this and Fidelity’s somewhat below. This upward trend indicates that most Bitcoin held by ETFs is still riding high in unrealized profit territory.

Over the year, the ETF cost basis has steadily risen, pointing towards continued institutional inflows and long-term accumulation practices, rather than quick-reaction speculative movements.

Bitcoin ETF Cost Basis

Daily Inflows Trend Negative, Yet Long-Term Demand Holds Firm

The latest ETF dashboard data from SoSoValue highlights a daily net outflow of $60.48 million recorded on December 8, reflecting a minor reversal during a phase of price consolidation. Nevertheless, cumulative inflows stand impressively at $57.56 billion, with total net assets in U.S. spot ETFs now totaling $118.50 billion—approximately 6.5% of Bitcoin's market cap.

This significant sum implies that Bitcoin’s price dynamics are increasingly influenced by institutional investors, rather than solely by retail sentiment or futures trading.

Price Holds Steady Above Vital Bitcoin ETF Entry Point

At the time of writing, Bitcoin is trading around $90,700, hovering just above the ETF cost basis zone. The current market action reveals a phase of sideways movement following a steep price drop last month, with the Relative Strength Index (RSI) close to neutral.

Should Bitcoin retest the $80,000 mark, it would place the price directly into a critical institutional breakeven area, which historically has seen strong buying support.

Bitcoin Price Trend

On the other hand, a clear move back above $95,000 would take the price away from this threshold and reinforce the cushion for ETFs.

The Importance of This Situation

Institutional investors have significantly built up their holdings at relatively high price points. If Bitcoin continues to consolidate near these levels without experiencing major outflows, it supports the notion that U.S. ETFs are acting as long-term holders rather than engaging in quick capital movements.

Conclusion

Bitcoin’s market remains on a watchful path as price consolidates near key levels. Institutions appear to be positioning themselves for the long game, which could lead to sustained stability and potential price growth. The nature of Bitcoin ETFs in the current landscape reinforces this trend, marking a shift towards longer-term investment strategies among major holders.