- Top Bitcoin ETF investors have yet to sell off their holdings amid market uncertainty.
- BTC price has entered a post-all-time high distribution phase with a potential trend reversal.
Bitcoin (BTC) institutional investors have demonstrated faith in the flagship cryptocurrency despite a 25% drop since January. Most of these investors still hold on to their BTC Exchange-Traded Funds (ETFs), demonstrating confidence in the coin’s future. Whether this trend will continue is based on investors’ sentiments and the state of the economic landscape.
Bitcoin ETF Investors Hold the Fort
According to a Bloomberg report, 95% of investors continue to hold the spot Bitcoin ETFs despite the strong market correction. James Seyffart, a Senior ETF analyst at Bloomberg, said inflows into the BTC ETF market have declined from the $40 billion peak to $35 billion. This represents over 95% of investor cash still exposed to BTC ETFs, even as BTC fell sharply by 25%.
Wall Street heavyweights Goldman Sachs and BNY Mellon are among the biggest investors in spot Bitcoin ETFs. In a recent study we reported on, Goldman Sachs increased its Bitcoin ETF investments to $2.3 billion. The institution’s interest in crypto assets showed accelerating growth, adding $710 million to its previous financial quarter metrics.
Goldman’s investments include BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, and several others. In contrast, BNY Mellon holds 39,526 shares of the ProShares Bitcoin Strategy ETF, valued at nearly $900,000.
US spot Bitcoin ETFs have attracted nearly $115 billion in inflows since their approval in January 2024. This data emphasizes the resilience of investors and big players in the spot Bitcoin ETF market.
Meanwhile, the spot Bitcoin ETFs have seen increasing outflows since mid-February, with nearly $5 billion outflows from the peak. According to Farside Investors data, the spot Bitcoin ETFs saw total outflows of $135.2 million on March 13. Fidelity’s FBTC led the outflows with $75.5 million, followed by Ark Invest’s ARKB with $60.2 million.
BlackRock iShares Bitcoin Trust (IBIT) became the outlier with net inflows of $45.7 million. BlackRock maintains confidence in Bitcoin’s long-term strategy, recently integrating its BTC ETF into a $150 billion model portfolio.
Selling Pressure Continues for Bitcoin
Bitcoin and the broader crypto market have come under severe selling pressure amid macro uncertainty and the Trump tariff war. Bitcoin surged above the crucial resistance of $84,000 on Wednesday following the release of US CPI data and cooling inflation. The coin, however, failed to hold above the crucial levels.
As of this writing, Bitcoin has declined 1.56% in the last 24 hours to $82,867. The daily trading volume decreased by 20.7% to under $29 billion.
At the same time, Coinglass data shows a spike in total liquidations. According to the data, the 24-hour liquidations spiked to $75 million, of which $52 million were from long positions.
Commenting on the current state of the market, data analytics platform Glassnode explained that Bitcoin has entered a post-all-time-high distribution phase. As mentioned in our previous news brief, this phase reflects shifting investor sentiment and increasing sell-side pressure.
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