Bitcoin ETF Investors in the Red After $89,600 Level Breaks

Core Insights - The Bitcoin rally has turned into losses for investors in US exchange-traded funds (ETFs), with the average cost basis around $89,600, leading to collective losses as Bitcoin trades below this level [1][2][4] - The recent decline in Bitcoin, approximately 30% since early October, has caught Wall Street off guard despite the influx of institutional investments [5][6] - The group of 12 spot ETFs dedicated to Bitcoin has experienced net outflows of about $2.8 billion in November, indicating a shift in investor sentiment [4][7] ETF Performance - The flow-weighted average price of all ETF inflows since launch is approximately $89,600, marking a critical threshold for investors [2][4] - As of 9:55 a.m. in London, Bitcoin was trading around $91,100, which is below the average cost basis for ETF investors [2] - The popularity of Bitcoin-focused ETFs has led to the launch of over 110 crypto-minded ETFs in the US this year [6] Market Sentiment - The sharp drop in Bitcoin's price has placed many institutional buyers underwater for the first time, raising concerns about potential further outflows if market sentiment does not stabilize [4][5] - The overall cryptocurrency market has seen a loss of $1.2 trillion in market value since Bitcoin's peak, with many smaller coins down over 50% for the year [7]