BlackRock ETF Investors Return to Profit as Bitcoin Reclaims $90,000

BlackRock's spot Bitcoin exchange-traded fund (ETF) investors have returned to profitability following Bitcoin's rise above $90,000. This recovery suggests that market sentiment among a key group of investors may be shifting favorably.

Key Takeaways

BlackRock’s iShares Bitcoin Trust ETF (IBIT) investors are now back in profit, showing a cumulative gain of $3.2 billion as of Wednesday, according to Arkham data.
Just a few days ago, these investors faced significant losses, dropping from a peak profit of nearly $40 billion to just $630 million.
Following Bitcoin's recovery above the critical $89,600 price mark, sentiment among ETF holders appears to be improving.
The market anticipates potential interest rate cuts by the U.S. Federal Reserve, further influencing Bitcoin's price movements.
Bitcoin ETFs experienced two consecutive days of inflows for the first time in weeks, indicating a possible turnaround in market dynamics.

BlackRock ETF investors bounce back to profit as price reclaims $90K

Main Content

On Wednesday, data from blockchain analytics platform Arkham indicated that holders of BlackRock's iShares Bitcoin Trust ETF (IBIT) have regained a cumulative profit of $3.2 billion, thanks to Bitcoin's resurgence above $90,000. This change marks a significant turnaround for a group of investors that has been crucial to the market's movements this year.

Arkham's report highlighted the rollercoaster ride of BlackRock ETF investors. Just weeks ago, they were reeling from losses, having dropped from a combined total profit of nearly $40 billion on October 7 to just $630 million four days prior. The average price at which ETF units were purchased now stands at about break-even, suggesting that many holders are no longer feeling the pressure to sell.

As sellers step back, Bitcoin ETFs may begin to see a decrease in selling pressures. The funds noted a marked improvement since experiencing $903 million in outflows on November 20.

BlackRock IBIT Bitcoin ETF holders, unrealized profit and loss ratio, three-month chart. Source: Arkham

Additionally, Bitcoin ETFs have recorded back-to-back days of net inflows, totaling $21 million, the first positive sign in two weeks, as reported by Farside Investors. This trend is encouraging for Bitcoin, especially since BlackRock's Bitcoin ETF was the only fund to log net inflows for 2025, according to K33 Research.

Source: Vetle Lunde

Geoff Kendrick, Standard Chartered's global head of digital assets research, noted that inflows from spot Bitcoin ETFs were crucial in boosting Bitcoin's performance in 2025. As the world's largest asset management firm, BlackRock now manages approximately $13.5 trillion in assets as of the third quarter.

Pressure Eases for Bitcoin ETF Investors Amid Interest Rate Adjustments

The broader group of spot Bitcoin ETF investors has also regained profitability following Bitcoin's return above the essential flow-weighted cost basis of $89,600, a significant threshold that had been lost in recent weeks.

Bitcoin's upward movement corresponds with rising expectations for interest rate cuts from the U.S. Federal Reserve, particularly ahead of the meeting on December 10. The likelihood of a 25 basis point cut has surged to 85%, up from just 39% the week prior, according to data from CME Group's FedWatch tool.

Interest rate cut probabilities. Source: CMEgroup.com

Despite recent price fluctuations that had pushed Bitcoin ETF investors below their cost basis around $89,600, most of these holders are characterized as "long-term allocators." As Vincent Liu, chief investment officer at Kronos Research, explained, being underwater on investments typically does not lead to immediate sell-offs among these long-term investors.

In summary, the current landscape suggests that Bitcoin ETF holders are finding stability once again, thanks to a combination of market dynamics and shifting economic conditions, paving the way for a potentially fruitful period ahead.

Magazine:__Bitcoin is ‘funny internet money’ during a crisis: Tezos co-founder