Bitcoin has declined over 40% from its October high, yet spot Bitcoin ETFs have demonstrated notable resilience, with only 6.6% of assets experiencing net outflows. Analyst Eric Balchunas highlighted that this is significantly lower than typical market reactions to similar declines. He noted that ETF investors generally allocate Bitcoin as 1%-2% of their portfolios, contrasting with the high-leverage strategies of native crypto traders, leading to a tendency for long-term holding. Balchunas suggests that the ETF structure may help stabilize Bitcoin within traditional financial frameworks, where short-term volatility is less impactful.
Bitcoin Drops 40% from October Peak, Spot ETFs Show Resilience
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