Fidelity Bitcoin fund leads $103M outflow amid sideways trend
Fidelity Wise (LON: WISEa ) Origin Bitcoin Fund (FBTC), known as the second-largest Bitcoin spot exchange-traded fund (ETF) in the United States, led a significant outflow in the cryptocurrency market. The fund sold 1,075 Bitcoin (BTC), valued at approximately $103 million, marking its second outflow in three days and the largest among US ETFs on that day.
The sale from FBTC represented a substantial 73.6% of the total $140.30 million Bitcoin liquidation by US issuers on Thursday. This move came as Bitcoin continued to exhibit a sideways trading pattern, with the digital currency experiencing a nearly 3% drop from its daily high on the same day.
The Grayscale Bitcoin Trust (GBTC), another major player in the market, also contributed to the outflows, selling 440 BTC worth $42.21 million on February 6. This sale brought GBTC's cumulative net outflow to $21.91 billion.
In contrast, other ETFs, such as the BlackRock (NYSE: BLK ) iShares Bitcoin Trust (IBIT) and the ARK 21Shares Bitcoin Trust (ARKB), did not engage in buying or selling activities. The Grayscale Bitcoin Mini Trust (BTC) stood out as the only product with a net inflow, purchasing $5.15 million worth of Bitcoin.
Following the sell-offs on Thursday, the cumulative net inflow for the Bitcoin spot ETF market, which has been active for over a year, reached $40.53 billion. The ETF issuers collectively hold net assets totaling $113.51 billion, which equates to nearly 6% of Bitcoin's total market capitalization.
Despite the recent sell-offs, large-scale Bitcoin investors, often referred to as "whales," have continued to accumulate the cryptocurrency. Earlier in the week, whale accumulation addresses saw an influx of over 30,000 BTC, amid anticipation of a potential price surge in the near future.
Since the beginning of February, the number of addresses holding at least 100 BTC has increased by 135, indicating growing institutional interest in Bitcoin. This trend is often interpreted as a sign of confidence in the long-term prospects of the cryptocurrency.
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