Bitcoin has experienced a significant pullback of over 40% since October, yet spot Bitcoin ETFs have only seen net outflows of approximately 6.6%. This muted reaction is attributed to ETF investors' typical allocation of just 1%–2% of their portfolios to Bitcoin, promoting a long-term holding approach. The ETF structure is viewed as helping to stabilize Bitcoin by integrating it more firmly into traditional financial assets despite short-term market volatility.
