Bitcoin (BTC) ETFs Saw Outflows During Crypto Price Crash, but Large Holders Bough the Dip

Bitcoin wallets holding between 1,000 and 10,000 BTC increased their holdings while prices slid over the past few days, while those owning less than 1 BTC were sellers, IntoTheBlock data shows.
Bitcoin ETFs saw $168 million net outflows on Monday, led by Grayscale's GBTC, Fidelity's FBTC and 21Shares/Ark Invest's ARKB.
ETF investors held on "much stronger" than expected with only 0.3% of the assets leaving the funds, argued one analyst.

Bitcoin (BTC) investors endured a (mostly down) rollercoaster of action as prices plummeted through the weekend to $49,000 by early Monday before modestly rebounding to around the $56,000 level in morning U.S. hours, triggering diverse reactions by holders.

Bitcoin whales, or large asset holders, seized the opportunity of lower prices to purchase, while small investors sold as the panic ensued, data by blockchain analytics firm IntoTheBlock shows.

Crypto wallets holding between 1,000 and 10,000 BTC, worth roughly $56 million and $560 million at current prices, "demonstrated confidence during the recent dip, consistently increasing their holdings as prices fell," IntoTheBlock analysts said.

Meanwhile, wallets with less than 1 BTC "showed weak hands, with the most substantial decrease in holdings during yesterday's market downturn, they added.

U.S-listed spot bitcoin exchange-traded funds booked $168 million net outflows on Monday, according to data collected by Farside Investors. Outflows were limited to Grayscale's GBTC, Fidelity's FBTC and 21Shares/Ark Invest's ARKB, while rivals showed very modest inflows or flat performance.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, focused on the positive, noting outflows only represented 0.3% of the total assets under management in the ETFs. Further, he said, the largest of the spot funds – BlackRock's $18 billion IBIT – had no net outflows.

"That's peanuts," Balchunas said, referring to the overall level of flows yesterday. "That said, it's one day, I could see some more outflows this week. I was thinking a couple billion would leave. So far though, looking much stronger than that."

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Bitcoin Whales Increased Holdings During Crypto Market Mayhem, but ETF Investors Didn't Buy the Dip

Though posting net outflows on Monday, the spot ETF action did show some positive surprises, Bloomberg ETF analyst Eric Balchunas noted.