Average IBIT investor now sitting on 40% loss

Those who invested in BlackRock’s iShares Bitcoin ETF (IBIT) are currently struggling. The average investor in this ETF is now sitting on a loss of roughly 40%, a painful reversal for anyone who was introduced to Bitcoin through this fund.

Bitcoin is available at OKX and Bybit.

From 30% profit to 40% loss

IBIT rapidly grew into one of the largest Bitcoin ETFs in the world after its launch in 2024, peaking at an impressive $44.4 billion in assets under management. By mid-2025, the average return per dollar invested still stood at 30%, according to data from Bespoke Investment Group. That meant investors were, on balance, well in the black relative to what they had put in.

But the recent sharp drop in the Bitcoin price has drastically changed that picture. Bitcoin currently sits at $60K, a recovery of 1.2% over the past 24 hours, but that is far from enough to offset the losses of the average IBIT investor, who is now down by around 40%.

A harsh introduction for mainstream investors

ETF Store president Nate Geraci, citing Bloomberg, describes it as a “brutal” introduction to Bitcoin for mainstream investors. IBIT attracted enormous capital flows in rapid succession after its launch, suggesting that many institutional and retail investors entered Bitcoin for the first time through this product. For them, that first experience has turned out particularly unfavourably.

The contrast with IBIT’s early days is stark. For a long time, the fund was seen as a success story and proof that mainstream adoption of Bitcoin was seriously underway. Now it shows how volatile the market can be, even for investors who deliberately chose a regulated and accessible product such as an ETF. Whether the current price constitutes a bottom or further declines will follow remains uncertain for now.