Bitcoin ETFs suffered their largest single-day outflow since August. Top whales are also divesting some of their holdings while the token price continues to struggle.
Fidelity and Ark Lead Bitcoin ETF Outflows
According to SoSoValue data, the fund saw $558.4 million in net outflows. This is the biggest daily drawdown since August 1. This comes as Bitcoin’s price continues to trade around $102,000.
Fidelity’s FBTC led with $256 million in outflows. Next was Ark Invest and 21Shares’ ARKB at $144 million in redemptions. This is its largest outflow relative to fund size.
Meanwhile, BlackRock’s IBIT ETF also saw outflows amounting to $131 million. This makes the seventh day of outflow in eight trading sessions. This reinforces fears that investors may be trimming positions as macro uncertainty builds.
Interestingly, JPMorgan revealed that it increased its stake in BlackRock’s Bitcoin ETF fund by 64%. It now holds 5.28 million shares, worth $343 million as of September 30.
The bank currently holds $68 million in call options and $133 million in put positions. Despite the outflows, Bitcoin’s price has maintained its current price. The token has slipped just 1% in the past 24 hours to $102,056.
OG Bitcoin Whales Keep Cashing Out
According to experts, the reason that could be causing the Bitcoin ETF outflows may be the ongoing liquidation by long-term holders. Capriole Investments co-founder Charles Edwards described the market as entering a “super whale exit phase.”
Large volumes are being sold by Bitcoin wallets that have been dormant for many years. On-chain data shows sales of over $100 million to $500 million. It suggests early adopters are “cashing out” on BTC.
Also, K33 Research analyst Vetle Lunde shared that net inflows of 319,000 BTC held for six to twelve months just moved into order for profit taking. The research firm also shared that “Mega whales” have sold over $45 billion in the past month.
However, investors remain optimistic that the market may bounce back. Michael Saylor’s recent “Buy Now” call and short-seller James Chanos’ backing out of bearish trades have boosted hopes for the token’s recovery.