BlackRock's spot Bitcoin exchange-traded fund (ETF) holders are once again in profit following Bitcoin's recovery above the $90,000 mark. This development may signal a shift in sentiment among a key investor group that has significantly influenced the market this year.
Holders of the iShares Bitcoin Trust ETF (IBIT), managed by BlackRock, achieved a cumulative profit of $3.2 billion as of Wednesday, according to data from blockchain analytics platform Arkham. This marks a significant turnaround from a period where combined profits for BlackRock and another ETF, ETHA, had dwindled to $630 million just four days prior, down from a peak of nearly $40 billion.
Arkham noted in an X post that the average purchase price for BlackRock's ETF holdings is now approximately at break-even. With ETF investors no longer facing immediate financial pressure, there is a potential for Bitcoin ETFs to reduce their selling rate. This comes after a notable period of outflows, including $903 million recorded on November 20.
Bitcoin ETFs have experienced two consecutive days of inflows, a positive development after two weeks of outflows. On Wednesday, cumulative inflows amounted to a modest $21 million, according to Farside Investors. This trend is particularly encouraging as BlackRock's Bitcoin ETF was reportedly the sole fund to achieve net positive inflows for 2025, as indicated by K33 Research.
Geoff Kendrick, global head of digital assets research at Standard Chartered, recently told Cointelegraph that inflows from spot Bitcoin ETFs were a primary catalyst for Bitcoin's momentum throughout 2025.
BlackRock, the world's largest asset management firm, reported $13.5 trillion in assets under management as of the third quarter of 2025.
Bitcoin ETF Investors Emerge from Pressure Amidst Rising Interest Rate Cut Expectations
The broader group of spot Bitcoin ETF investors has also returned to profitability. This comes after Bitcoin surpassed the crucial flow-weighted cost basis of $89,600, a level that had been breached two weeks prior.
Bitcoin's recent recovery has been bolstered by a significant increase in expectations for interest rate cuts by the U.S. Federal Reserve. The odds for a rate cut at the Fed's December 10 meeting have risen by 46% over the past week.
According to the CME Group's FedWatch tool, markets are now pricing in an 85% probability of a 25 basis point interest rate cut, a substantial increase from the 39% probability observed a week ago.
Approximately two weeks ago, Bitcoin's price correction caused Bitcoin ETF holders to fall below their flow-weighted cost basis, which was near $89,600. At that time, the average holder was experiencing paper losses on their investments, as noted by Glassnode analyst Sean Rose.
However, Vincent Liu, chief investment officer at quantitative trading firm Kronos Research, commented to Cointelegraph that most ETF holders are considered "long-term allocators." This classification suggests that experiencing unrealized losses does not typically prompt immediate selling activity.