Fidelity Bitcoin ETF Sells $257 Million Worth of BTC: What’s Happening?

by

Based on Lookonchain statistics from January 10th, there were substantial withdrawals observed in Bitcoin and Ethereum ETFs, indicating a more reserved attitude among investors.

2,152 Bitcoins, equivalent to around $201.21 million, were withdrawn from Bitcoin ETFs collectively, and Fidelity was one of the contributors, withdrawing 2,752 Bitcoins worth approximately $257.26 million. However, despite this significant outflow, Fidelity still maintains a large holding of 205,488 Bitcoins valued at a staggering $19.21 billion.

As a crypto investor, I’ve noticed that there was a significant withdrawal of Ethereum from Exchange Traded Funds (ETFs) recently, to the tune of about 45,684 Ether, equivalent to approximately $148.11 million. Interestingly, this trend seems to have been primarily influenced by Fidelity, who offloaded a substantial amount of 44,998 Ether, or around $145.88 million.

10th January Update:

– 10 Bitcoin Exchange-Traded Funds (ETFs) saw a net outflow of approximately 2,152 Bitcoins ($201.21 million)
– Among these, Fidelity experienced an outflow of 2,752 Bitcoins ($257.26 million), leaving them with a total of 205,488 Bitcoins ($19.21 billion)

– 9 Ethereum ETFs saw a net outflow of about 45,684 Ethereums (-$148.11 million)
– Fidelity specifically had an outflow of 44,998 Ethereums ($145.88 million), with a remaining balance of 415,503 Ethereums…

— Lookonchain (@lookonchain) January 10, 2025

Currently, Fidelity owns approximately 415,503 Ethereum tokens, which equates to a value of around $1.35 billion. This change in holdings might be due to adjustments based on current market conditions or strategic repositioning, as investors adapt to the emerging investment trends at the start of 2025.

In my recent exploration of the Bitcoin ETF landscape, I’ve noticed that Fidelity has been leading the pack, outpacing BlackRock in terms of weekly net inflows. As reported by U.Today, this is a significant development that underscores Fidelity’s growing influence in this sector.

BlackRock outshone by Fidelity in spot Bitcoin ETF

As an analyst, I find myself observing a significant development in the case of BlackRock, who have faced a testing time recently. Notably, they encountered two major withdrawals of Bitcoin funds in the month of December – the biggest such occurrences since the launch of their ETF.

Fidelity’s active acquisition strategy demonstrates their dedication to boosting their influence within the cryptocurrency ETF industry, suggesting a surge of institutional attention and rivalry in this fast-changing field.

Eric Balchunas, a well-known analyst in the field of ETFs at Bloomberg, presented a balanced viewpoint regarding the significant withdrawals from Bitcoin ETFs in recent times. Despite recognizing the substantial nature of these pullbacks, Balchunas considered them as expected and long-overdue, following a prolonged phase of steady growth.

The long-awaited approval process for Bitcoin ETFs appears to be finally progressing, with recent developments suggesting significant advancement. However, history has shown that this process can be a bit stop-and-go, so while it’s been moving forward quite consistently lately, it seems overdue based on my perspective.

— Eric Balchunas (@EricBalchunas) January 3, 2025

He pointed out that the growth rate of Bitcoin ETFs may not continue at its current pace forever, stressing that recent withdrawals should be seen as a sign of market adjustment rather than a reversal.

Balchunas compared the current state to a “pause” in a lengthy voyage, a typical rest during an ongoing progression, emphasizing the robustness of the Bitcoin ETF market even amid temporary obstacles.

Read More

2025-01-11 13:33