Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin ETFs manage billions despite price decline, yet stability conceals difficult truths.
Bitcoin spot ETFs in the United States currently maintain approximately $85 billion in assets, despite the decline in BTC prices.
Bitcoin ETF resilience conceals a challenging reality of positioning. (geralt/Pixabay)
Key points:
- Bitcoin spot ETFs in the United States currently maintain approximately $85 billion in assets, despite the decline in BTC prices.
- Analyst Markus Thielen suggests that this resilience indicates a structural ETF ownership primarily influenced by market makers, arbitrage-focused hedge funds, and not solely by long-term investors.
Bitcoin exchange-traded funds (ETFs) continue to retain billions in assets, even in the face of a significant price drop for bitcoin, but this endurance may not necessarily signal bullish sentiment as many have come to assume.
One analyst notes that this resilience is attributed to market makers and arbitrage traders who frequently buy and sell rather than committed long-term holders anticipating price increases.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newslettersSign me up
Related Posts
The price of bitcoin has reached a high of over $126,000 in early October before recently dropping to around $60,000. Despite this price reduction, the 11 spot bitcoin ETFs listed in the U.S. have collectively recorded only $8.5 billion in net outflows. These funds still manage $85 billion in assets, which represents over 6% of bitcoin’s total supply.
Several analysts, including those CoinDesk engaged with during Consensus Hong Kong last week, referenced similar data as evidence of bullish positioning.
Markus Thielen, founder of 10x Research, asserts that the persistence is not solely due to long-term holders, but also involves market makers and arbitrageurs with hedged, neutral positions.
“This illustrates the structural characteristics of ETF ownership, which is largely influenced by market makers and arbitrage-oriented hedge funds that maintain primarily hedged positions, along with long-term institutional investors who exhibit low turnover and extended investment horizons,” Thielen stated in a report to clients on Wednesday.
Thielen highlighted findings from institutional reports (known as 13F filings) from late 2025. These indicate that between 55% and 75% of BlackRock’s IBIT ETF, which manages $61 billion, is held by market makers and arbitrage-focused hedge funds that maintain hedged or neutral bets, rather than being genuinely bullish on bitcoin.
Market makers are entities that provide liquidity in an exchange’s order book, enabling the smooth execution of significant buy and sell orders at consistent prices. They earn profits through the bid-ask spread and therefore aim to maintain market-neutral exposure to avoid risks associated with price fluctuations. Likewise, arbitrage hedge funds adopt opposing positions in different markets, such as spot ETFs and futures, to benefit from price discrepancies between the two.
Consequently, both types of entities do not exert directional influences (bullish or bearish) on the market.
Thielen added that market makers reduced their exposure by approximately $1.6 billion to $2.4 billion during the fourth quarter, as bitcoin traded around $88,000, reflecting “decreasing speculative demand and lower arbitrage inventory needs.”
