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$4.58B BTC withdrawn from US spot ETFs

$4.58B BTC withdrawn from US spot ETFs

GrafaGrafa2025/03/17 07:30
By:Mahathir Bayena

In recent weeks, U.S. spot Bitcoin (CRYPTO:BTC) ETFs have experienced significant withdrawals, with a notable reduction of 55,348 Bitcoins from their holdings over just 35 days.

This decrease represents a 4.76% drop since February 6, 2025, following an initial surge in Bitcoin holdings earlier in the year.

From January 1 to February 6, these ETFs accumulated approximately 56,802.86 Bitcoins, marking a peak of 1.177 million Bitcoins.

However, the subsequent decline has left them with a total value of $93.25 billion as of March 14, accounting for about 5.6% of Bitcoin's total market capitalization.

BlackRock's IBIT remains at the forefront with a net inflow of $39.24 billion and a holding of 568,559.37 Bitcoins.

Fidelity's FBTC follows closely, with a total inflow of $11.25 billion and a holding of 194,269.83 Bitcoins.

Despite a net outflow of $22.5 billion, Grayscale's GBTC holds 193,870.05 Bitcoins, placing it third.

These three major ETFs collectively account for 85.26% of the total Bitcoin holdings across all U.S. spot Bitcoin ETFs, which currently stand at 1.121 million Bitcoins.

The recent outflows are part of a broader trend, with U.S. Bitcoin spot ETFs experiencing a net outflow of $921 million last week alone, marking the fifth consecutive week of withdrawals.

This ongoing exodus reflects a cautious stance among institutional investors, contrasting sharply with the strong start to the year when these ETFs attracted significant investments.

As the market continues to evolve, new entrants are preparing to join.

Osprey Funds has submitted a draft registration for its Osprey Bitcoin Trust (OBTC), though it awaits SEC approval.

Despite these developments, the overall sentiment in Bitcoin spot ETF options remains bullish, with increased trading activity and a high long-short ratio.

In the broader context, the SEC has delayed decisions on several altcoin ETFs, including those for XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), Litecoin (CRYPTO:LTC), and Dogecoin (CRYPTO:DOGE).

Investors are advised to consider the fees associated with these ETFs, as high management fees can erode returns.

For instance, Grayscale's GBTC charges a management fee of 1.50%, while other issuers offer fee waivers to attract investors.

At the time of reporting, the Bitcoin (BTC) price was $83,296.59.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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