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Bitcoin Drops Below Average Cost Basis of US Spot ETFs

Bitcoin Drops Below Average Cost Basis of US Spot ETFs

US spot Bitcoin ETFs saw their largest single-day inflow since January, indicating robust investor interest despite prices trading below average cost basis.

BTC

Fact Check
The evidence provided strongly and consistently supports the statement. Multiple authoritative and highly relevant financial news sources, including MSN and two separate articles from Yahoo Finance, explicitly state that the price of Bitcoin has fallen below the average cost basis for holders of US-based spot Bitcoin ETFs. These reports use phrases like "average Bitcoin ETF buy underwater" and "average Bitcoin ETF investor turns underwater," which directly mean the current price is below the average purchase price. A third article from Phemex News corroborates this finding. The consistency across these independent news outlets lends high credibility to the claim. Furthermore, one source from a data aggregator, Newhedge, is identified as providing the exact type of raw data (total net flows) needed to calculate this average cost basis, which suggests the news reports are based on verifiable data. There is no conflicting evidence presented in the sources; the irrelevant sources were correctly identified and do not pertain to the statement.
Summary

U.S.-listed spot Bitcoin ETFs recorded $561.8 million in net inflows on Monday, marking the strongest daily buying since Jan. 14, according to Farside Investors. BlackRock’s iShares Bitcoin Trust brought in $142 million and Fidelity’s FBTC added $153.3 million, helping reverse a 10-day streak of outflows amid a price drop from $98,000 to under $75,000. The ETFs hold about 1.3 million BTC, just 5% below their October peak of 1.37 million BTC, while the average cost basis sits at $84,099 compared to the current spot price near $78,000. Despite being roughly 40% below its all-time high, Bitcoin’s strong ETF inflows suggest sustained investor confidence.

Terms & Concepts
  • Spot Bitcoin ETF: An exchange-traded fund that directly holds Bitcoin, allowing investors to gain exposure to its market price without owning the cryptocurrency directly.
  • Cost Basis: The original value or purchase price of an asset, used to determine profit or loss upon sale.