Over the past few days, the ETF holdings in the Bitcoin market have changed quite dramatically, as the largest reduction in Bitcoin reserves is seen in several major funds.
Nine major ETF lowered 2,824 BTC: According to Lookonchain, the latest report shows that the total value of Bitcoin holdings of nine major ETFs dropped $182.6m because of losing 2,824 BTC. The trend reflects a larger sense of institutional caution as the market shifts.
Fidelity’s Wise Origin Bitcoin Fund, one of the hardest-hit funds, saw a 13.71% decrease, selling 1,377 BTC for approximately $89.06 million. This tweak takes their total holdings to 170,152 BTC.
This includes Grayscale, a big trader in the realm of Bitcoin investment, who decreased its assets by 834 BTC, now having a total of 280,378 BTC, the equivalent to $18.13 billion. The decision is part of a wider trend of pulling back Bitcoin investments amid changing market behavior.
Source: Lookonchain
Impact on Bitcoin’s Market Stability
This significant withdrawal from Bitcoin ETFs comes at a time when the asset itself is experiencing a downturn in its market value. The last seven days saw a 2.9% loss in Bitcoin price with the last 24 hours alone contributing a further 2.1% decrease. This steady removal of money from these ETFs plays into selling pressure that drives the overall price of Bitcoin down.
Jun 18 Update:9 ETFs decreased 2,824 $BTC(-$182.6M).#Fidelity decreased 1,377 $BTC(-$89.06M) and currently holds 170,152 $BTC($11B).#Grayscale decreased 834 $BTC(-$53.95M) and currently holds 280,378 $BTC($18.13B).https://t.co/SXZJxa6Io4 pic.twitter.com/zlUbbemNxr
— Lookonchain (@lookonchain) June 18, 2024
In the wider ETF landscape, other funds Trading such as ARK 21 Shares Bitcoin ETF and Invesco Galaxy Bitcoin ETF combined have all seen outflows of almost 842 BTC. The change marks a broader trend seen throughout the sector, with institutional investors exercising caution as total holdings have dropped by 6,000 BTC in the past week from its current 877,621 BTC to 871,621 BTC.