ETF Investors Stay Calm Amid Crypto Price Volatility

Crypto ETF investors appear to be weathering the current downturn in cryptocurrency prices without panicking and redeeming their assets. Despite Bitcoin's price plummeting by over 50% from its October 2025 peak, investors have mostly held on. This is according to executives at Bitwise and GraniteShares.

Bitwise chief investment officer Matt Hougan said that ETF investors are largely holding through the downturn. 'It's not the ETF investors who are driving the sell-off,' he explained. The decline in assets under management, Hougan noted, is mainly due to falling crypto prices rather than heavy redemptions.

Spot Bitcoin ETFs have seen total outflows of around $7 billion, but Hougan emphasized that much of the selling pressure comes from long-time crypto holders who accumulated Bitcoin years ago and are now trimming positions. About 40% of spot Bitcoin ETF holders are currently underwater, but Hougan added that 'the vast majority of ETF investors showed they're here for the long haul.'

GraniteShares CEO Will Rhind echoed Hougan's sentiment, stating that ETF investors typically hold smaller crypto allocations and are more comfortable riding out volatility. The selling has been 'pretty light compared to the total assets out there,' he said.