In recent days, there has been a significant shift in the ETF holdings within the Bitcoin market, with several major funds experiencing the largest reduction in Bitcoin reserves.
According to a recent report from Lookonchain, nine major ETFs have collectively lowered their Bitcoin holdings by 2,824 BTC, resulting in a total value drop of $182.6 million. This trend indicates a growing sense of institutional caution as the market dynamics evolve.
Fidelity’s Wise Origin Bitcoin Fund, in particular, has been heavily impacted, with a 13.71% decrease in holdings, selling 1,377 BTC for approximately $89.06 million. This adjustment brings their total holdings to 170,152 BTC.
Grayscale, a prominent player in the Bitcoin investment space, has also reduced its assets by 834 BTC, leaving them with a total of 280,378 BTC, equivalent to $18.13 billion. This decision is part of a broader trend of scaling back Bitcoin investments in response to changing market conditions.
The significant withdrawal from Bitcoin ETFs comes at a time when the asset itself is experiencing a decline in market value. Over the past seven days, Bitcoin has seen a 2.9% price drop, with a further 2.1% decrease in the last 24 hours. This ongoing removal of funds from ETFs contributes to selling pressure, driving down the overall price of Bitcoin.
In addition to Fidelity and Grayscale, other ETFs such as ARK 21 Shares Bitcoin ETF and Invesco Galaxy Bitcoin ETF have also experienced outflows totaling almost 842 BTC. This trend is reflective of the caution being exercised by institutional investors, with total holdings decreasing by 6,000 BTC in the past week from 877,621 BTC to 871,621 BTC.
Overall, the shifting landscape of Bitcoin ETF holdings underscores a broader trend in the market, as investors navigate changing dynamics and adjust their strategies accordingly.