Bitcoin News Today: Institutions Bet Big on Bitcoin ETFs as Price Dips, Defying Retail Losses

Bitcoin's decline below $89.6K has left the average investor in spot Bitcoin ETFs with losses, as the cryptocurrency's price slump-dropping from a peak of $107K in early November to under $95K by midweek-has eroded gains. Despite the downturn, major institutions including Harvard University, Emory University, and an Abu Dhabi sovereign wealth fund have continued to expand their Bitcoin ETF holdings, signaling a long-term strategic bet on the asset class.

Harvard's endowment, the world's largest academic fund with $56.9 billion in assets, nearly tripled its position in BlackRock's iShares Bitcoin Trust (IBIT) during the third quarter, increasing its stake from 1.9 million to 6.8 million shares. At the time of its September 30 filing, the position was valued at $442.8 million, though it has since fallen to $364.4 million as BTC prices dropped. Emory University also boosted its Bitcoin exposure, adding 91% to its Grayscale Bitcoin Mini Trust (BTC) holdings and maintaining a smaller stake in IBIT. Meanwhile, Abu Dhabi's Al Warda Investments reported a 230% increase in IBIT shares, now valued at $517.6 million.

The price drop has also triggered significant liquidations in leveraged crypto positions. Over $316 million in long positions were liquidated in one day, with Bitcoin-specific liquidations accounting for $190 million according to reports. The broader market has followed BTC lower, with the total crypto market cap now at $3.27 trillion according to data. "Unless institutional buyers step back in, we could be stuck moving sideways... or sliding lower," one trader noted on social media according to reports.

Analysts remain divided on the outlook. Bloomberg's Eric Balchunas called Harvard's ETF investment "as good a validation as an ETF can get," though he noted the position represents just 0.6% of the university's endowment according to reports. Michael Saylor, CEO of MicroStrategy, denied reports of his company selling Bitcoin and reiterated his bullish stance, predicting the asset will outperform gold and the S&P 500 by 2025 according to statements.

Some market watchers see parallels between Bitcoin's recent price action and XRP's trajectory after its ETF debut. XRP's spot ETF, the Canary Capital XRP ETF (XRPC), launched with $245 million in inflows but has since fallen 2.78%. Analyst EGRAG noted that Bitcoin itself dropped 20% after its ETF launch in January 2024 before staging a 227% rebound. If XRP follows a similar pattern, it could see a 230% recovery from current levels, though such projections remain speculative.

For now, the market appears in a holding pattern. Institutional flows typically align with price momentum, and with BTC and ether (ETH) trading below October highs, investors are scaling back positions. "The market is pausing, not breaking," one analyst observed according to market analysis. Large inflows may return if prices stabilize or if regulatory clarity emerges, but until then, the average ETF investor remains locked in a losing streak.